5paisa Capital raises fresh capital from the market
The Board approves proposal to raise ₹2,508.70 million through preferential issue of equity shares and warrants
The Board of Directors of 5paisa Capital has approved the company's proposal to raise ₹2,508.7 million through a preferential issue of equity shares and warrants at ₹500 per share which is a premium of over 70 per cent to 13 April 2021 closing price of ₹292 per share on NSE to a set of marquee investors and promoters and promoter group. The Board gave its approval to the proposal on 13 April 2021. The preferential issue is subject to shareholder and other necessary approvals.
5paisa Capital is currently India's only listed pure-play discount broker and is engaged in providing financial products through its online technology platform and mobile applications.
Commenting on the funding round, Prakarsh Gagdani, CEO, 5paisa.com said, "Investment from such marquee investors and promoters is a strong vote of confidence on our business model. The business has been witnessing rapid growth with total income of over ₹1,400 million for nine months of FY2021, up 98 per cent year-on-year."
5paisa has been able to carve out a robust customer franchise of more than 1.3 million customers and 6.5 million mobile app users despite the turbulent times the Indian financial sector has been witnessing due to the COVID-19 pandemic.
"We have grown our product offering to customers over the years which currently include broking, mutual funds, insurance, peer-to-peer lending, international stocks, gold investing and margin funding," Gagdani added.
The company is looking forward to adding more products to its portfolio soon. It hopes that the availability of equity funds will help the company accelerate its investment in customer-centric technology and sustain the pace of growth.
IIFL Securities was the exclusive financial advisor to the company for the transaction.
5paisa Capital Limited is registered with SEBI as a stockbroker, depository participant and research analyst, and with AMFI as a mutual fund distributor.
Its services are targeted at retail investors and high volume traders who actively invest and trade in securities markets and seek DIY (Do-it-Yourself) services at a low cost.
The Company provides an online technology platform to clients through internet terminals and mobile applications for trading in securities in NSE and BSE; advisory services through the research undertaken by a team of fundamental and technical research analysts; and depository related services as part of its integrated services offering.