Prime Securities To Acquire Majority Stake In DhanLAP Operator Ark Neo
Prime Securities Ltd. will acquire a majority stake in Ark Neo Financial Services Ltd., which operates loan app DhanLAP, according to the exchange filing on Thursday.
The company entered into an agreement to buy a 41.68% stake from Ark Neo promoters for Rs 2 crore. Prime Securities will also infuse capital, in one or more tranches, of up to Rs 5 crore into the fintech firm by subscribing to optionally convertible debentures, following which its holding will increase to over 50%, the filing stated.
Prime Securities' total investment in the Chennai-based company will be Rs 7 crore. The acquisition is part of its broader strategy to diversify and strengthen its portfolio. Recently, the company expanded into the wealth management sector through its wholly owned subsidiary, Prime Trigen Wealth Ltd., according to the filing.
DhanLAP, launched in October 2021, is a digital platform for instantly availing loans against financial products, including mutual funds, shares and insurance, for retail investors.
"DhanLAP, with its innovative approach to loans against securities, is perfectly aligned with Prime Securities' strategic vision of expanding into scalable, technology-driven solutions in the financial services sector, driving long-term growth and value," Akshay Gupta, director of Prime Securities, said.
"Most retail investors are unaware that their investments in mutual funds and stocks can be used as collateral for securing loans," C R Chandrasekhar, chief executive officer of Ark Neo, said. "And, as many people don't know this, they redeem their investments in mutual funds in times of need"
"With DhanLAP, we have streamlined the entire process, making it quick and convenient by fully digitising the journey to access finance. This solution not only addresses their immediate financial needs but also ensures that their wealth continues to grow without interruption," Chandrasekhar added.
Shares of Prime Securities closed 2.27% lower at Rs 292.35 apiece on the BSE, compared to a 0.29% decline in the benchmark Sensex.
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