5Paisa to raise Rs. 104 crores through rights issue

Discount broker 5Paisa.com has announced plans to raise Rs. 104 crores through a rights issue in the next 3 to 4 months.

In a filing to the bourses, the company said that it is planning to enter the peer-to-peer (P2P) lending business soon. The company has applied for a P2P license with the Reserve Bank of India and is waiting for the approval.

The company's board has approved a proposal to issue equity shares by way of a rights issue to the existing shareholders in the ratio of one equity share of Rs. 10 each for every equity share of Rs. 10 each held in the company at a price of Rs. 80 per share aggregating to Rs. 103.52 crore.

In November last year, 5Paisa.com became the first discount broker to be listed. It plans to use the funds for investing in improvisation of technology platform, scaling up its business operations and investment in alternative businesses.

On Wednesday, the scrip closed at Rs. 319 per share, down Rs. 12.45 or 3.76 per cent on NSE. The scrip opened at Rs. 331.95 and touched an intraday low of Rs. 337.35 per share on NSE. The stock attracted a traded volume of 11,432 shares on NSE.