| Strategic investors buy stake in Networth |
| BS Reporter / Mumbai December 17, 2007 |
| DSP Merrill Lynch chairman Hemendra Kothari-promoted DSP HMK Holdings and foreign institutional investors, Mavi investment fund [MM-Warburg (Schweiz) AG] and Peninsular South Asia investment company - South Asia Access fund and corporate bodies, Mackertich consultancy services and Stewart Investment and Financial have picked up a stake worth Rs 49.79 crore through preferential issue of equity shares and convertible warrants. The preferential issue is subscribed at the rate of Rs. 131.40 a share. The deal is subject to approvals from Sebi, shareholders and other regulatory authorities. The investment proposal has been approved and recommended in the meeting of board of the company held on December 8. Girish Dev, CEO, Networth Stock Broking, said: "We are delighted to have the support of pedigree investors and investors who understand not only the potential of this business but also the difference that Networth can make in this financial services space." The Rs 35 crore infusion, through the issue of additional equity shares is growth capital and is going to help us strengthen our position significantly. Upon conversion of warrants in due time, the company would be receiving an additional Rs 15 crore. The capital will be utilised primarily towards increasing the margin capital requirements for Networth |
