LIC-Owned NBFC Stock Below Rs 40 To Consider Fundraising Via Equity Share Issuance

As an RBI-regulated NBFC, Paisalo Digital Limited stated that its Board convenes to consider the possibility of raising funds via the offer of equity shares or other securities on April 8, 2025. This proposed fundraising may include an offer through private placement, preferential issue, or through other means subject to necessary regulatory approvals.

"Pursuant to Regulation 29 and 50 of the Listing Regulations, we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, April 08, 2025, interalia, to consider raising of funds by way of issuance of equity shares and/or any other eligible securities through permissible modes, including but not limited to a private placement, preferential issue or any other method or combination of methods subject to such approvals as may be required," said the company in a stock exchange filing.

The company has, in the recent past redeemed 1,200 of its 9.95% Listed, Secured Redeemable Non-Convertible Debentures (NCDs) with a face value of Rs 1,00,000 each, which matured on March 28, 2025. The balance of 600 NCDs under the same ISIN is due to mature on June 28, 2025.

In its most recent financial results, it has been noted that Paisalo Digital reported robust growth. For Q3 FY25, net sales grew by 11.6 percent as compared to the previous year's quarter and netted Rs 203.75 crore, and net profit also rose by 10.6 percent to Rs 62.43 crore. For the nine month period ending December 2024 (9M FY25), net sales grew by 24.6 percent on a year-on-year basis and netted Rs 577.33 crore, while net profit increased by 8.1 percent to Rs 153.83 crore.

The stock price for this company has ranged from Rs 34.48 to Rs 86.82 in the last year. Institutional investors seem to hold the majority shares in this company, with SBI Life Insurance Co. Ltd owning 9.87% and Life Insurance Corporation of India (LIC) owning 1.35% as of December 2024.

The company has a complete distribution network in rural and semi-urban areas of India and now has over 65 lakh customers spread across 3,275 customer service centers in 22 states. Paisalo is dominating the economy as it has completed over Rs 3,400 crore in transactions in just two years, further claiming its top status in the income payroll division and credit allocation.

Paisalo works as a business correspondent for most of the major banks like State Bank of India and Bank of India and helps extend the services to the areas which are not tired to receive banking features. The company aims to increase financial reach to all people in India to gain full inclusion.