Company’s Board of Directors on Tuesday approved capital raise of Rs.250.87crs through a preferential issue of equity shares and warrants at Rs.500 per share which is a premium of over 70 pc to Tuesday’s closing price of Rs.293 per share on NSE, to a set of marquee investors and Promoters and Promoter Group. The proposed investors for preferential allotment are Ward Ferry, Fairfax and RIMCO and warrants are being subscribed to by the promoters, Mr Nirmal Jain, Ms Madhu Jain and Mr R Venkataraman. The preferential issue is subject to shareholder and other necessary approvals. The notice of postal ballot for the preferential issue will be issued on April 14, 2021. The e-voting shall commence on April 15, 2021 and end on May 14, 2021. Each warrant issued is convertible into one equity share Commenting on the funding round, Mr 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. In the midst of growing number of players, 5paisa has carved out a robust customer franchise. 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 exclusive financial advisor to the Company for the transaction.
