Monarch Networth Capital, an integrated financial services firm, plans to raise Rs 300 crore through a preferential share allotment and a 1:1 bonus share issue. The shares will be priced at Rs 560 each, representing an 8.5% discount from the last traded price on the BSE.
The fundraising will be led by Monarch Infraparks Pvt Ltd, a promoter group entity, contributing Rs 99 crore, with the company’s CEO, Gaurav Bhandari, adding Rs 25 crore. Other investors involved in the preferential allotment have not been disclosed.
Monarch Networth Capital intends to use the new funds for strategic initiatives across its diverse business segments. The company aims to accelerate its growth initiatives, innovate its offerings, and continue delivering exceptional value to its stakeholders.
The firm also plans to launch a portfolio management service, expand its margin trading book, initiate a pre-IPO fund, apply for a mutual fund license, enhance its debt capital market division, and underwrite IPOs. Additionally, Monarch Networth Capital has appointed MSKA & Associates as its auditor, pending shareholder approval at the upcoming AGM.
With this fundraise, Monarch Networth Capital’s net worth is expected to surge to Rs 700 crore by September 30, 2024. The company’s net profit increased to Rs 123 crore in FY24 from Rs 43 crore in FY23, with a net profit of Rs 40 crore recorded in the first quarter of FY25.
