5paisa To Raise Over INR 250 Cr Through Equity Issue

5paisa Capital, a discount broker, said on Tuesday it will raise Rs 250 crore by allotting shares and warrants on a preferential basis to institutional shareholders and promoters.The proposed investors for preferential allotment include Prem Watsa's Fairfax, one of the co-promoters of the brokerage, Hong Kong-based Ward Ferry, and Rimco. Promoters Nirmal Jain, Madhu Jain and R Venkataraman are subscribing to the warrants.

5paisa.com claims to have more than 1.3 Mn customers, 6.5 Mn mobile app users and claims to be one of the fastest-growing discount broking companies in India. The company offers broking, mutual funds, insurance, peer-to-peer lending, international stocks, gold investing and margin funding as part of its product bouquet. 5paisa.com reported an income of INR 144.7 Cr for the first nine months of the financial year 2021, up 98% year-on-year. 

“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 a 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,” said Prakarsh Gagdani, CEO at 5paisa.com.

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