5Paisa.com’s rights issue oversubscribed 111%

5Paisa.com on Tuesday said its maiden rights issue, which ran from July 23 to August 6, received 1.1 times subscription.

The issue received bids worth Rs 112 crore against the Rs 101 crore on offer.

Prakarsh Gagdani, CEO, 5Paisa.com said, “The company aims to deploy the capital primarily for business expansion and we expect the issue to provide a strong boost to our growth momentum.” At the end of FY19, 5Paisa.com had a market share of 2.4 per cent in the cash segment and 1.9 per cent overall.

The company crossed a customer base of 250,000 in FY19 with 58,000 acquisitions in the last quarter of the year.

The rights issue was offered to the existing shareholders of the company in the ratio of 1 equity share of Rs 10 each for every 1 equity share of Rs 10 each held in the company at a premium of Rs 70 per share i.e. issue price of Rs 80 each aggregating to Rs 101.9 crore. The company had fixed the record date of May 29 for determining the eligible equity shareholders.