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Home / Markets / Stock Markets /  5paisa Capital share price surges on plans to raise 250 cr via equity issue

Shares of 5paisa capital surged 20% in Thursday's early deals to 350 per share on the NSE after the company announced on Wednesday that it is raising 250 crore through a preferential issue of shares to investors and warrants to promoters.

The board of directors at 5paisa Capital has approved capital raise of 250.8 crore through a preferential issue of equity shares and warrants. The issue of shares and warrants will be done at the price of 500 per share, which represents a premium of 70% over Tuesday's closing price of 293 on the NSE, the company stated.

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.

The company said it has 13 lakh customers and 65 lakh mobile app users and its product offering includes broking, mutual funds, insurance, peer-to-peer lending, international stocks, gold investing and margin funding. Its services are targeted at retail investors and high volume traders who actively invest and trade in securities markets.

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