5paisa Capital share zooms 20% as firm plans to raise Rs 250 crore

Share of 5paisa Capital ended 20 per cent higher today after the firm said it would raise Rs 250 crore through a preferential issue of shares to investors and warrants to promoters. The issue of shares and warrants will carried out at the price of  Rs 500 per share, which represents a premium of 70% over Tuesday’s closing price of  Rs 293 on the NSE, the company stated.

Buoyed by the announcement, the share of discount broking firm opened 20% higher at Rs 350.40 on BSE. The stock was stuck in the upper circuit of 20% throughout the session and closed at the same level. The stock has gained 24.61% in the last 2 days. The micro cap share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 115.63% in one year and risen 16.24% since the beginning of this year. In a week, the stock has clocked 21.26% gains. 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.

Sensex ends 260 points higher in volatile session: How to play the market going ahead