LIC-Owned Paisalo Digital Completes Partial NCD Redemption – Key Takeaways For Investors

A prominent non-banking financial corporation (NBFC) that specializes in small-ticket loans, Paisalo Digital Limited, has announced the partial redemption of Rs 12 crore worth of its 9.95% Non-Convertible Debentures (NCDs).

"Pursuant to Regulation 30 and other applicable Regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that pursuant to issue terms 9.95% Listed, Secured Redeemable Non-Convertible Debentures (Series- PDL122023L2, ISIN: INE420C0707) having face value of Rs. 1,00,000 each (NCDs), Company has partly redeemed 1200 NCDs on its maturity date i.e. March 28, 2025. Further, in terms of issue the remaining 600 NCDs under the said ISIN will be matured on June 28, 2025," confirmed Paisalo Digital in a stock exchange filing on Friday.

The $48 million Foreign Currency Convertible Bonds FCCB issued by Paisalo Digital Limited were recently successfully listed on the AFRINEX Exchange, which is situated in Mauritius. The corporation announced this on Tuesday, March 25, 2025, in a stock market filing. Additionally, Paisalo Digital confirmed last week that the Rs 30 crore commercial paper that was due on March 20, 2025 has been fully redeemed and repaid.

Prior to this, the Operations and Finance Committee of Paisalo Digital approved the private placement of commercial papers (CPs) in order to raise up to Rs 90 crore. An 11.00% yield was obtained by issuing 600 listed CPs to State Bank of India (SBI) at an issue price of Rs 4,86,653.50 apiece. A total of Rs 30 crore in posts at Rs 5 lakh apiece were distributed. These CPs are scheduled to mature on June 18, 2025, having been issued on March 19, 2025. For this transaction, IDBI Bank Ltd. has been appointed as the Issuing and Paying Agent (IPA).

An NBFC that is registered with the Reserve Bank of India, Paisalo Digital Ltd., has made a name for itself in India's rural and semi-urban regions. The firm has over 65 lakh clients and services them through 3,275 points of presence in all 22 states. Institutional stake in the company includes a 9.87% shareholding from SBI Life Insurance Co. Ltd. and a 1.35% stake from the Life Insurance Corporation of India (LIC).

On Friday, the shares of Paisalo Digital ended at Rs 33.97 per share with a market cap of Rs 1,934.36 Cr. The small cap NBFC stock touched a 52-week-high of Rs 86.90 on (10-Apr-2024) and a 52-week-low of Rs 31.82 on (26-Mar-2025).

Leading rating agencies continue to endorse the company's stable outlook, indicating good financial health, whereas Paisalo Digital's debt management plans for long-term expansion while retaining a solid liquidity position are demonstrated by the partial redemption of NCDs.