5Paisa.com’s rights issue oversubscribed 111 pc

5Paisa.com’s rights issue oversubscribed 111 pc

Agency News

Mumbai, Aug 13 : 5Paisa.com, India’s only listed discount broking firm on Tuesday said its maiden rights issue has been oversubscribed 111 per cent helped by growing investor interest in India’s discount broking space as they rapidly eat into traditional brokers’ pie helped by miniscule cost, advanced technologies and the rise of the millennials.

5Paisa’s maiden rights issue received bids worth Rs 112 crore against the Rs 101 crore on offer. The rights issue opened on July 23, 2019 and closed on August 6, 2019, the company release said. The rights issue was offered to the existing shareholders of the Company in the ratio of 1 equity share of Rs 10 each for every 1 equity share of Rs 10 each held in the Company at a premium of Rs 70 per share i.e. issue price of Rs 80 each aggregating to Rs 101.9 crore.

The Company had fixed the Record Date of May 29, 2019 for determining the eligible equity shareholders. Prakarsh Gagdani, CEO, 5Paisa.com said, ''The Company aims to deploy the capital primarily for business expansion and we expect the Issue to provide a strong boost to our growth momentum.'' At the end of FY19, 5Paisa.com had a market share of 2.4 pc in the cash segment and 1.9 per cent overall.''UNI