iFAST boosts stake in Indian associate company

Singapore

INVESTMENT solutions firm iFAST Corporation has boosted its stake in its associate company Pecuniam via a rights issue as it seeks to tap business opportunities in India.

It has subscribed for around 3.58 million new ordinary shares at an issue price of S$0.22, totalling over S$788,000. This lifts its stake in Pecuniam from 21.42 per cent to 24.98 per cent.

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 that 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 highlighted in a filing to the Singapore Exchange on Monday night.

iFast said: "The group believes the rights issue allows opportunities to tap India's potential strategic role in terms of providing business opportunities to the rest of the group."

It went on to add: "The group also views the valuation of the transaction as attractive, given the increased attention the financial technology sector is generating globally, including India."

The transaction is not expected to have any material impact on the group's earnings per share and net tangible assets per share for the financial year ending Dec 31, 2018.