Paisalo Digital Ltd, a non-banking financial company (NBFC) backed by LIC, recently saw a notable movement in its stock following the redemption of ₹30 crore worth of commercial papers (CPs) and the issuance of new CPs to the State Bank of India (SBI).
Key Developments
- CP Redemption and New Issuance: On March 12, 2025, Paisalo Digital fully redeemed ₹30 crore worth of commercial paper upon maturity. Simultaneously, the board approved the issuance of 600 new CPs worth ₹29.19 crore to SBI via private placement, with a yield of 11.05% and a 91-day tenure, maturing on June 10, 2025.
- Stock Reaction: Following the announcement, Paisalo Digital’s stock experienced a positive move, jumping 3.24% to ₹36.96 per share from its previous close of ₹35.80. The stock, however, has seen significant volatility, correcting nearly 49% in the past year but delivering over 250% returns in five years.
- LIC and SBI Stake: LIC holds a 1.44–1.9% stake in Paisalo Digital, while SBI Life Insurance owns nearly 9.4–10%.
- Business Performance: For Q3 FY2025, Paisalo Digital reported an 11% rise in standalone net profit to ₹62.07 crore, with revenue from operations at ₹193.76 crore. The company has a market capitalization of over ₹3,200 crore and has serviced over 65 lakh customers through 3,275 touchpoints across 22 states.
Financial Inclusion and Growth
Paisalo Digital focuses on providing credit to self-help groups and women from weaker sections, leveraging partnerships with large banks like SBI and Bank of India. The company has facilitated transactions worth over ₹3,400 crore in the past two years, underscoring its commitment to financial inclusion and rural development.
Recent Fundraising
- NCD Allotment: In June 2025, Paisalo Digital allotted 5,000 non-convertible debentures (NCDs) with a face value of ₹1 lakh each, offering a 10% annual coupon with monthly payments and a 24-month tenure.
- FCCB Issuance: The company also raised its first tranche of USD 50 million via foreign currency convertible bonds (FCCBs), aiming to strengthen its capital base and support growth initiatives.
Summary Table: Recent Debt Activities
| Instrument | Amount | Investor | Yield / Coupon | Tenure | Maturity |
|---|---|---|---|---|---|
| Commercial Paper | ₹30 crore | SBI | 11.05% | 91 days | June 10, 2025 |
| NCD | ₹50 crore | Multiple | 10% (monthly) | 24 months | June 2027 |
| FCCB | USD 50 mn | Foreign | – | – | – |
Conclusion
Paisalo Digital’s proactive debt management—redeeming CPs and promptly issuing new instruments—along with its backing from major institutional investors like LIC and SBI Life, has kept market attention on the stock. Its focus on rural credit and financial inclusion, coupled with robust fundraising, positions it strongly in the NBFC sector despite recent share price volatility.
Ref: Paisalo Digital Soars 10% After Successful Redemption of Commercial Paper of Rs 30 Cr
LIC-owned NBFC stock ended session on positive note after SBI’s investment – Details