Monarch Networth Capital Raises Rs 300 Crores and Issues Bonus Shares
Monarch Networth Capital, an integrated financial services firm, announced a significant fundraising and the issuance of bonus shares following a board meeting. The company raised Rs 300 crores through preferential allotment at Rs 560 per share.
The board approved a 1:1 bonus issue of shares, meaning investors will receive one extra share for each share they own. The company’s net profit has grown from Rs 2 crore in 2019-20 to Rs 123 crore in 2023-24.
The newly secured funds will support various business initiatives, including launching a Portfolio Management Services (PMS) offering, scaling the Margin Trading book, launching a pre-IPO fund, applying for a Mutual Fund license, and strengthening the Debt Capital Market division.
CEO Gaurav Bhandari stated, “This fundraise will empower us to accelerate our growth initiatives, innovate our offerings, and continue delivering exceptional value to our stakeholders.”
Managing Director Vaibhav Shah added, “The issue of 1:1 bonus shares is a gesture to showcase our gratitude and commitment to rewarding our investors’ enduring belief in Monarch Networth’s immense potential. The fresh capital will enable us to explore new avenues and enhance our service offerings. With this fund raise, our net worth is set to surge.”
The company’s net worth is expected to reach Rs 700 crore by September 30, 2024. Monarch Networth Capital is present in over 100 cities with about 55 branches and a sub-broker network of over 900.
Doubts Revealed
Monarch Networth Capital -: Monarch Networth Capital is a company that helps people and businesses manage their money and investments.
Rs 300 crores -: Rs 300 crores is a large amount of money, equal to 3 billion rupees. In India, ‘crore’ is a term used to represent ten million.
Preferential allotment -: Preferential allotment is a way companies raise money by giving shares to a select group of investors at a special price.
Rs 560 per share -: Rs 560 per share means each share of the company is being sold for 560 rupees.
Bonus shares -: Bonus shares are extra shares given to existing shareholders for free, based on the number of shares they already own.
1:1 bonus shares -: 1:1 bonus shares mean for every share a person owns, they get one additional share for free.
Net profit -: Net profit is the amount of money a company makes after subtracting all its costs and expenses.
CEO -: CEO stands for Chief Executive Officer, the person who is in charge of managing the entire company.
Managing Director -: Managing Director is a high-ranking person in a company who helps make important decisions and manage the business.
Gaurav Bhandari -: Gaurav Bhandari is the CEO of Monarch Networth Capital, the person who leads the company.
Vaibhav Shah -: Vaibhav Shah is the Managing Director of Monarch Networth Capital, helping to run the company.
