Direct plan distributors of mutual funds have been attracting a lot of investments.
In the latest example, the board of 5paisa.com, the listed discount broker who offers direct mutual fund has approved capital raise of Rs.250.87 crore through a preferential issue of equity shares and warrants.
The price of share would be Rs.500 per share which is a premium of over 70% to Tuesday’s closing price of Rs.293 per share on NSE.
The proposed investors for preferential allotment are Ward Ferry, Fairfax and RIMCO. Also, the company will offer warrants to the promoters - Nirmal Jain, Madhu Jain and R Venkataraman.
5paisa.com has more than 1.3 million customers and 6.5 million mobile app users. The company offers broking, mutual funds, insurance, peer-to-peer lending, international stocks, gold investing and margin funding. The company has reported an income of Rs 144.7 crore for April-December 2021.
