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5Paisa.com’s rights issue oversubscribed 111 pct

FE Bureau
The rights issue opened on July 23 and closed on August 6. (Website image)

India's only listed discount-broking firm 5Paisa.com on Tuesday said its rights issue was oversubscribed 111%. The firm's rights issue received bids worth Rs 112 crore against the Rs 101 crore on offer. The rights issue opened on July 23 and closed on August 6. The firm's stock also ended the day on a positive note at Rs 134.25, up by 2.44% or Rs 3.20, on BSE.

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. 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 equity share of Rs 10 each held in the firm at a premium of Rs 70 a share i.e. issue price of Rs 80 each aggregating to Rs 101.9 crore. The firm had fixed the record date of May 29 to determine eligible equity shareholders.