Monarch Networth Capital Announces ₹300 Crore Fund Raise

On July 28, 2024, Monarch Networth Capital Ltd, an integrated financial services firm listed on both stock exchanges, announced a strategic fundraising and a bonus share issue following a decisive board meeting. The company has secured an equity fundraising of ₹300 crore at ₹560 per share through preferential allotment.

This move is championed by Promoter group entity Monarch Infraparks Private Limited with an investment of ₹99 crore and the company’s CEO Gaurav Bhandari contributing ₹25 crore, underscoring their confidence in the company’s ambitious growth trajectory. The board has also approved a 1:1 bonus issue of shares for its investors. Monarch Networth’s net profit has soared from ₹2 crore in FY-20 to ₹123 crore in FY-24, demonstrating the company’s unwavering commitment to growth.

Future Strategic Initiatives

The newly secured funds will fuel strategic initiatives across Monarch Networth’s diverse business verticals, including the launch of a Portfolio Management Services (PMS) offering, scaling the Margin Trading book, launching a Pre-IPO fund, applying for a Mutual Fund license, strengthening the Debt Capital Market division, and underwriting IPOs.

Governance and Board Enhancements

In terms of governance, MSKA & Associates has been appointed as the new auditor, subject to shareholder approval at the upcoming AGM, and the company plans to enhance its board with experienced industry professionals. These steps mark a significant milestone in Monarch Networth Capital’s journey towards a promising future.

Regarding the announcement, Mr Gaurav Bhandari, CEO of MNCL, said, “This is a pivotal moment in Monarch Networth’s journey. The overwhelming support from our investors reflects their confidence in our vision and our strategic direction. This fundraise will empower us to accelerate our growth initiatives, innovate our offerings, and continue delivering exceptional value to our stakeholders. At Monarch Networth, where value creation begins, we are committed to transforming every investment into substantial benefits for our clients, partners, and community. Together, we are not just building a company; we are shaping a legacy of excellence and innovation in the financial services industry.”

About Monarch Networth Capital Ltd. (MNCL)

Since 2019, Monarch Networth has undergone a remarkable transformation. The company has grown from a traditional offline retail broking firm into a dynamic, fully integrated financial services powerhouse.

On July 29, 2024, Monarch Networth Capital Ltd’s share price opened at ₹659.85, touching the high of ₹665.10 as of 09:42 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.