5Paisa Capital Gains 5% On Fund Raising Plans

On Friday, shares of discount broking company 5Paisa Capital Ltd rose nearly 5 percent to Rs 394.90 after its board approved raising plans to the tune of Rs 900 crore through the issuance of equity shares.

On Thursday, the digital discount broking company said in a regulatory filing that it plans to raise up to Rs 1,150 crore by issuing equity shares and other instruments.

The board of directors at their meeting held on 3 September 2020, considered to raise funds not exceeding Rs 900 crore through issuance of equity shares along with warrants or any other security.

The company said it plans to raise the fund through preferential allotment, qualified institutional placement, issue of warrants or any other modes in one or more tranches.

Additionally, the board also cleared the proposal for raising up to Rs 250 crore through issuance of non-convertible debentures on a private placement basis, it added.

Among others, the board of directors also approved the appointment of Ravi Garikipati as an additional non-executive and independent director with effect from 3 September 2020.

He was chief technology officer at Flipkart in the past and has recently co-founded fintech start-up Davinta Finserv focussing on financial inclusion for the bottom of the pyramid.