Online investment and trading services company 5paisa Capital Ltd has proposed to acquire 100% share capital of Bengaluru-based Giskard Datatech Pvt Ltd in a deal comprising a cash consideration of ₹121.57 crore and a preferential share issue through a share swap.
The acquisition is aimed at strengthening 5paisa’s digital capabilities, expanding its technology offerings, achieving strategic synergies and enhancing long-term shareholder value.
Deal structure
Under the proposed transaction, 5paisa will pay ₹121.57 crore in cash to acquire 1,03,082 equity shares of Giskard, representing a 58.68% stake.
The company will also issue equity shares on a preferential basis through a share swap to acquire another 20.51 lakh equity shares, representing 37.65% of Giskard’s share capital.
Wholly owned subsidiary
The share swap ratio has been fixed at one equity share of 5paisa for every 31 equity shares held in Giskard.
Upon completion of the transaction, Giskard Datatech will become a wholly owned subsidiary of 5paisa Capital.
Technology focus
Giskard Datatech provides data-driven technology solutions, including software development, data processing, analytics and technology infrastructure services.
The company develops and supports data platforms, information systems and analytical tools for processing large datasets and generating actionable business insights.
Next steps
The cash component of the consideration will be paid immediately under the commercial understanding between the parties.
Following receipt of the required regulatory approvals, the shares acquired by the promoters will be swapped for equity shares of 5paisa in accordance with the agreed transaction structure and applicable laws.