LIC-Owned Stock Makes Timely Payment of FCCB Interest, Strengthens Balance Sheet By Issuing NCDs of Rs 50 Cr

Paisalo Digital Limited, which trades publicly as a Non-Banking Financial Company (NBFC) under the authority of the Reserve Bank of India, has recently made the scheduled interest payment on its Foreign Currency Convertible Bonds (FCCBs). The company holds FCCBs amounting to USD 48 million with a 7.5% coupon rate. Interest payments were due on June 10, 2025. Payments relating to these agreements have been made, thus demonstrating good corporate governance concerning debt payment obligations.

Paisalo Digital has recently undertaken the private placement of 5,000 Rated, Listed, Senior, Secured, Redeemable, Taxable Non-Convertible Debentures (NCDs) to further diversify its funding sources. The face value of each NCD is issued at Rs 1 lakh, thus attaining a total issuance of Rs 50 crores. A monthly coupon payment of 10% per annum is payable for a period of 24 months. These NCDs are set to mature on June 3, 2027.

The debentures are secured with a first-ranking pari-passu charge on the company's loan receivables and a security cover of 1.10x the outstanding principal. The principal amount will be redeemed at maturity in a lump sum payment. In cases of delays exceeding three months, an additional penalty interest of 2% per annum above the coupon rate will apply.

Paisalo's financial metrics for FY25 showed both annual and quarterly progress. In Q4FY25 the company's net sales amounted to Rs 182.08 crore, and the net profit rose 26.4% year-on-year to Rs 46.29 crore. For the year ending March 31, 2025, net sales amounted to Rs 711.11 crore, up 8% compared to the previous fiscal year. Net profit for the year stood at Rs 200.12 crore, a 12% rise.

The company's market capitalization currently stands at above Rs 2,800 crore. There is still strong institutional interest in the company, with Foreign Institutional Investors (FIIs) upping their stake to 10.38% as of March 2025. In Q4 FIIs purchased 88.5 lakh shares which indicates increased confidence in the company's fundamentals. Among domestic institutions, SBI Life Insurance Co. Ltd has a 9.36% stake, and LIC holds 1.17%.

Through its broad rural and semi-urban distribution network, Paisalo Digital focuses on inclusive financing. The company has 3,275 physical touchpoints located in 22 states, serving over 65 lakh customers. Over the last two years, Paisalo has facilitated loan transactions exceeding Rs 3,400 crore, solidifying his reputation as a major player in income-generating financing.

Through business correspondent relationships with State Bank of India and Bank of India, Paisalo Digital expands credit access to unbanked and underbanked populations. His technology-powered approach ensures remote areas receive loans quickly and easily.

Paisalo Digital Limited has enhanced its reputation as a reliable, growth-oriented NBFC by maintaining timely debt servicing, building up reserves, and achieving steady financial results. These efforts have made the company a key driver in enhancing financial inclusion in India.