1:1 Bonus Shares: LIC-Backed NBFC Stock Sets Record Date; Scrip At All-Time High

Paisalo Digital Ltd is a small-cap NBFC company in the finance sector. The stock rose from its opening price of Rs 137.85 a share on the BSE on Friday to reach a new one-year high of Rs 145.90 during the trading session. Later, the share price climbed 6.12% to Rs 142.95 per share at the closing session of Friday, giving it a market value of Rs 6,418.77 Cr. Following the Board of Directors' decision to finalise the record date for bonus shares, the stock experienced an upsurge.

"With reference to recommendation of Board of Directors in their meeting held on January 31, 2024 for issue of Bonus Shares in the ratio of 1:1 i.e. one new bonus Equity Share of Re. 1 each for every one existing Equity Share of Re. 1 each held by the shareholders of the Company as on the Record Date, we would like to inform you that Board members of the Company has fixed Wednesday, March 20, 2024 as the 'Record Date' for ascertaining the eligibility of shareholders entitled for issuance of Bonus Equity Shares of the Company. The Bonus Issue of Equity Shares is subject to shareholders approval which is sought through Postal Ballot (Voting period starts from February 8, 2024 to March 8, 2024)," said Paisalo Digital in a stock exchange filing.

Subject to obtaining shareholders' approval and other statutory/regulatory approvals, as may be necessary, the bonus shares shall be credited/ dispatched within 2 months from the date of the Board approval i.e. on or before March 31, 2024, according to the company.

"We would like to inform you that meeting of Operations and Finance Committee of the Board of Directors of Paisalo Digital Limited is scheduled to be held on February 21, 2024 to consider Issuance (Allocation) of Non-Convertible Debt Securities/Instruments on Private Placement basis," said Paisalo Digital in a regulatory filing on Saturday.

On a consolidated basis, the company reported net sales of Rs 182.59 crore in the December 2023 quarter up 49.33% from Rs. 122.27 crore in the December 2022 quarter. Its net profit jumped by 102.44% from Rs. 27.89 crore in Q3FY23 to Rs. 56.46 crore in Q3FY24. EBITDA for the firm increased by 56.29% to Rs. 141.04 crore in the December 2023 quarter from Rs. 90.24 crore in the same quarter of the previous fiscal year.

During Q3FY24, LIC held a shareholding of 42,36,822 shares or 1.35% equity stake and SBI Life Insurance owned a shareholding of 3,57,29,439 shares or 11.35% stake in Paisalo Digital. In fact, the largest lender in the country State Bank of India (SBI) held 42,15,243 shares which are 1.34% of the total paid-up share capital of the company during the quarter ended 31st December 2023.