Monarch Networth Capital to raise Rs 300 Cr in preferential shares

Integrated financial services firm Monarch Networth Capital will raise Rs 300 crore through a preferential share allotment and launch a 1:1 bonus share issue.

Monarch will price the shares at Rs 560 per share, at an 8.5% discount to the last traded stock price on the BSE. 

The fundraising will be led by promoter group entity, Monarch Infraparks Pvt Ltd, with Rs 99 crore and the company’s CEO Gaurav Bhandari pooling Rs 25 crore. It did not identify other investors taking part in the preferential allotment.

Monarch will use the new funds for strategic initiatives across the company’s diverse business verticals, it said in a statement.

“This fundraise will empower us to accelerate our growth initiatives, innovate our offerings, and continue delivering exceptional value to our stakeholders,” said Gaurav Bhandari, CEO of MNCL.

The company also plans to launch a portfolio management service offering, scale its margin trading book, launch a pre-IPO fund, apply for a mutual fund license, strengthen its debt capital market division, and underwrite IPOs.

Monarch has also appointed MSKA & Associates as the auditor, subject to shareholders' approval in the upcoming AGM.

“With this fundraise, our net worth is set to surge to Rs 700 crore by September 30, 2024,” said Vaibhav Shah, Managing Director, MNCL.

The company’s net profit rose to Rs 123 crore in FY24 from Rs 43 crore in FY23. It recorded a Rs 40 crore net profit in the first quarter of FY25.