5Paisa.com, India’s only listed discount broking firm today said that its maiden rights issue has been oversubscribed 111% 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 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.
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% in the cash segment and 1.9% overall.
5Paisa.com crossed a customer base of 250,000 in FY19 with 58,000 acquisitions in the last quarter of the year and the momentum continues with over 25,000 acquisitions in July itself. 5Paisa.com aims to have about 1 million customers by end of FY20 and position it amongst top 3 brokers across segments in India.
The 5paisa.com Mobile App has over 27,00,000 downloads till date, highest in its category in India with a sustained 4 Star rating on Playstore.
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.
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