Share of 5paisa Capital ended 20 per cent higher today after the firm said it would raise Rs 250 crore through a preferential issue of shares to investors and warrants to promoters. The issue of shares and warrants will carried out at the price of Rs 500 per share, which represents a premium of 70% over Tuesday's closing price of Rs 293 on the NSE, the company stated.
Buoyed by the announcement, the share of discount broking firm opened 20% higher at Rs 350.40 on BSE. The stock was stuck in the upper circuit of 20% throughout the session and closed at the same level. The stock has gained 24.61% in the last 2 days. The micro cap share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 115.63% in one year and risen 16.24% since the beginning of this year. In a week, the stock has clocked 21.26% gains. The investment will be made by Ward Ferry, Fairfax and RIMCO, along with the promoter group, which includes IIFL's Nirmal Jain, Madhu Jain and R Venkataraman, the company said.
5paisa.com said its board has approved the fundraise, which will have to be approved by the shareholders of the company. A notice of postal ballot for the issue will be issued on April 14 and the e-voting will be held between April 15 to May 14.
In Q3 of previous fiscal, the firm reported a net profit of Rs 3.06 crore against net loss of Rs 2.18 crore in the year-ago period. Total income rose to 85 per cent to Rs 49.61 crore for the quarter under review from Rs 26.88 crore in three months ended December 31, 2019. The company has on-board more than 1.9 lakh, new clients, during the quarter, taking the total number of registered customers to 11.45 lakh.