Prime Securities to issue 45.50 lakh equity shares on preferential basis; Stock hits 5% upper circuit

The Company proposed to raise approximately Rs40cr, for making investments in one or more digitally powered platforms or marketplaces.

Oct 14, 2021 11:10 IST India Infoline News Service

Prime Securities Ltd has informed that the Board of Directors on October 13,2021, has considered and approved the issue of up to 45,50,000 Equity Shares of face value of Rs. 5/- each ("Equity Shares") of the Company, on a Preferential Basis, at a price of Rs. 88.75 per Equity Share, aggregating Rs40,38,12,500/-.

The Board of Directors has approved issue of equity shares to the following investors:
  • Meridian Investments - 19,00,000 shares - Rs16,86,25,000/-
  • Anand Jain - 12,00,000 shares - Rs10,65,00,000/-
  • Himanshi Kela - 5,00,000 shares - Rs4,43,75,000/-
  • McJain Infoservices Private Limited - 4,00,000 shares - RsRs3,55,00,000
  • Samir Arora - 3,00,000 shares - Rs2,66,25,000/-
  • Latika Ahuja - 2,50,000 shares - Rs2,21,87,500/-
In addition to the surpluses that the Company currently has, it is proposed to raise approximately Rs40cr, for making investments in one or more digitally powered platforms or marketplaces, either by building from scratch or acquiring one or more existing enterprises with the above characterised assets or any other digitally enabled business that could enhance the Prime services offering, said company in a regulatory filing.

Further, "as important as the money itself, we have sought to onboard marquee, best-in-class investors of the Indian capital markets, especially those who straddle both, the old economy and new age enterprises. This is a strong reaffirmation of the proposed Prime 3.0", it added.

This equity funding round is led by Meridian Investments (family office entity of TV Mohandas Pai) and includes Anand Jain (eminent serial entrepreneur and investor), Himanshi Kela (family of Madhusudan Kela), McJain Infoservices Private Limited (entity owned by Tarun Jain), Samir Arora (eminent fund manager) and Latika Ahuja (ex-banker and seasoned investor).

These investors would significantly embellish the current cap table of Prime; especially critical, as the Company embarks on a bold new plan that encompasses the steady cash flows of the traditional Investment Banking business with the exciting upsides of unfettered digital growth being undertaken.

At around 11:47 AM, Prime Securities was trading at Rs115.55 per piece up by Rs5.5 or 5% on the BSE.

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