5paisa Capital bucks trend after board approves fund raising

5paisa Capital gained 1.89% to Rs 386 after the company's board approved raising upto Rs 1,150 crore through a combination of debt and equity.

In a filing made after market hours on Thursday, the company said that the board of directors at their meeting held on 3 September 2020, approved raising upto Rs 900 crore through issuance of equity shares along with warrants or any other security, whether secured/unsecured or listed/unlisted, or a combination thereof, either through preferential allotment, qualified institutional placement, issue of warrants or any other modes to persons who are eligible to acquire securities in one or more tranches.

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

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

5paisa Capital is engaged in providing financial products through its online technology platform and mobile applications. It is registered with Sebi as a stock broker, depository participant and research analyst, and with AMFI as a mutual fund distributor.

The company reported consolidated net profit of Rs 2.81 crore in Q1 June 2020 as compared to net loss of Rs 0.52 crore in Q1 June 2019. Total income rose 85.17% to Rs 42.44 crore.

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