Anand Rathi’s Pick of The Month: Paisalo Digital To Issue Commercial Papers Via Private Placement Basis

The shares of Paisalo Digital were the subject of attention on Tuesday as, after beginning at Rs 57.28, the stock was up 0.58% at Rs 57.70. The market value of the firm was Rs 5.18KCr. The company notified stock markets on Monday that the operations and finance committee of Paisalo Digital Limited's Board of Directors will meet on December 19, 2024, to discuss and authorise the issuance of commercial papers on a private placement basis.

The stock experienced bullish momentum following the company's announcement that the Board of Directors of Paisalo Digital Limited will meet on December 23, 2024 to discuss and approve a proposal to raise funds through the issuance of convertible warrants, equity shares, and/or other company securities through a private placement preferential issue.

The stock will be the talk of the town because the Operations and Finance Committee of the Board of Directors of Paisalo Digital Limited is meeting on December 11, 2024, to discuss and approve the issuance (allocation) of listed commercial papers through a private placement basis.

The first tranche of USD $50 million was successfully raised by Paisalo Digital Limited (PDL) on Friday through the issuance of Secured Foreign Currency Convertible Bonds (FCCB). The NBFC stated in a release that this is the initial round of FCCB issue by Paisalo Digital and that it would be carried out in accordance with the relevant external commercial borrowing standards established by the Reserve Bank. Through FCCBs, the company hopes to raise up to $75 million in one or more tranches. The FCCBs are scheduled to mature in 2029 after five years at a coupon rate of 7.5%.

Well-known international credit funds and international fixed-income funds made significant contributions to Paisalo Digital Limited's (PDL) initial FCCB issuance. The proceeds earned from the FCCB issue will support Paisalo's mission to provide comprehensive and easily accessible financial solutions to empower India's sizable underbanked population.

Anand Rathi Investment Services, a broking company, believes that Paisalo Digital shares have an excellent upside. In an official statement issued on Wednesday, the broking company named Paisalo Digital shares as its pick of the month. The brokerage has recommended Paisalo Digital Ltd (PAISALO) to buy at Rs 54-58; target price of Rs 70; stop loss at Rs 49.

The company released its financial results for the quarter that ended in September 2024 last month. Its revenue from operations increased by 35.12% from Rs. 130.21 crore in the September 2023 quarter to Rs. 175.93 crore in the September 2024 quarter. In Q2FY25, its net profit was Rs. 49.52 crore, rising 4.89% from Q2FY24's Rs. 47.21 crore. EBITDA climbed 21.08% from Rs. 115.69 crore in the September 2023 quarter to Rs. 140.08 crore in the September 2024 quarter. In the quarter ended September 2024, Paisalo Digital's earnings per share (EPS) dropped to Rs. 0.55 from Rs. 1.05 in the same quarter of FY24.