NBFC Stock Paisalo Digital To Consider NCDs Private Placement Allotments On June 3; LIC Holds Stake

A Non-Banking Financial Company registered with the RBI, Paisalo Digital Limited (BSE: 532900), focusing on financial inclusion, has notified the market that the company's Operations and Finance Committee intends to meet on June 3, 2025, regarding the private placement of Non-Convertible Debentures (NCDs).

In a stock exchange disclosure, the company mentioned, "We inform you that a meeting of the Operations and Finance Committee of the Board of Directors is scheduled for June 3, 2025 to consider and approve the Private Placement of Non-Convertible Debentures."

This is after the company's previous approval to offer up to 5,000 unlisted, secured NCDs, with each having a face value of Rs 1,00,000, totalling a maximum of Rs 50 crore. These NCDs are set to yield an annual interest rate of 10%, paid monthly, with a term of two years. The initial issue limit is set at Rs 25 crore, with a green shoe option of an additional Rs 25 crore.

These debentures will be listed on the BSE and have as collateral a first-ranking pari-passu charge on receivables of loans, with a cover of 1.10 times the outstanding principal. Assuming the allotment date is to be on 22nd May 2025, there will be a cap on the imposed interest rate of 2% per annum in case of payment defaults.

As per Trendlyne data, LIC is reported to possess a 1.9% stake in Paisalo Digital, whereas SBI Life Insurance holds 9.4%, which showcases the trust from institutional investors in the company's growth vision.

Paisalo Digital reported strong financial performance in the fourth quarter of FY25, posting a net profit of Rs 46.29 crore, which is a 26% increase from Rs 36.61 crore from the same quarter the previous year. For the quarter, the total sales by the company were around Rs 193.77 crore when compared to Rs 195.29 crore in Q4 FY24. For the full financial year ending March 31 2025, the net profit of the company was around 200.12 crore, which marks a growth of 12% from 178.97 crore in FY24. Subsequently, the company also announced a final dividend of 10 per cent for each share of face value of Rs 1 for FY25 and has proven itself to be a healthy contender in the market.

Paisalo Digital has over 65 lakh customers and 3,275 touchpoints throughout 22 states, servicing them as a major credit distributor and having a strong presence in rural and semi-urban areas. The firm's transaction volume in the past two years stands at over Rs 3,400 crore. The firm's tailor-made business correspondent model, developed with state-owned banks like the State Bank of India and Bank of India, has enabled the company to extend financial services to Indian's underserved populations.