SINGAPORE -iFAST Corporation has boosted its stake in its associate company, Pecuniam, from 21.42 per cent to 24.98 per cent via a rights issue.
It has subscribed for around 3.58 million new ordinary shares at an issue price of S$0.22, totalling over S$788,000.
The issue price represents a 10 per cent premium to the equivalent share price of Pecuniam based on the last transacted price of iFAST Financial India (IFI).
Pecuniam is an investment-holding company which owns Singapore-incorporated iFAST India Investments, which in turn owns a 74.99 per cent stake of IFI. IFI is an India-incorporated company engaged in the distribution of investment products, including mutual funds in India.
Pecuniam will utilise the net proceeds of the rights issue for the purpose of its working capital and the growth of the business.
iFast said in a filing with the Singapore Exchange: "The group believes the right issue allows opportunities to tap on India's potential strategic role in terms of providing business opportunities to the rest of the group. The group also views the valuation of the transaction as attractive, given the increased attention the financial technology sector is generating globally, including India."