NBFC Stock With LIC’s Stake Rally 14% In 2 Days Amid Fundraising Plan And Strong Q4 Results

Shares of LIC-backed Paisalo Digital Ltd., a non-banking finance company (NBFC) surged by more than 4% in addition to the 10% gained earlier during the trading session on Tuesday, May 13, after the company's announcement concerning the board meeting set towards discussing a proposed fundraising agenda. The total gains amounted to an impressive 14% across a two-day period.

The company disclosed in a filing made after the close of markets on Monday that the committee will convene on the 15th of May to review and sanction plans aimed at acquiring funds through the issuance of listed secured non-convertible debentures (NCDs) on a private placement basis.

The filing stated: "A meeting of Paisalo Digital Limited's Operations and Finance Committee of the Board of Directors is proposed to be held on May 15, 2025, to consider and approve the fundraising proposal by issuance of Secured, Non-Convertible Debentures on Private Placement basis."

In the filling momentum, on May 12, the company's promoter group entity, Equilibrated Venture Cflow announced the release of a pledge on 75,00,000 shares, which is equal to a 0.83 % stake. After this release, the total pledged shares held by the promoter group are 8,39,09,002.

In the meantime, Paisalo Digital reported strong financial results for the company for the quarter ended March 2025 (Q4 FY25). The company recorded a standalone net profit of Rs 45 crore for the quarter, which is a 25% YoY growth, up from Rs 36 crore in the same quarter the previous year. Sharply rising Net Interest Income (NII) and improved lending performance were the result of a YoY increase of 41% on NII reaching Rs 96 crore. During the quarter, total interest income was recorded at Rs 178.09 crore compared to total interest income of Rs 147.73 crore for Q4 FY24.

The firm realized its peak ever Assets Under Management (AUM) of Rs 5,232.8 crores, attaining a 14.1% growth of Rs 4,586 crores from the previous year's figure. Due to this strong performance, the Board has recommended a dividend of Rs 0.10 per equity share (10% of face value) for FY25.

Even with underlying sector strength, the small-cap stock remains volatile as single shares can be had for under Rs 50. Tuesday's session started with shares trading at Rs 34.13, right next to the previous day's closing price of Rs 34.14 and reached the intraday high of Rs 35.62, which is a 4.3% gain. Though the stock is up 12.33% over the past month, it is down 43% compared with the previous year.

As of March 20245, Paisalo Digital's largest domestic institutional investor (DII) LIC holds a 1.17% stake, making them the holder of the stock's institutional value.

With a robust presence in rural and semi-urban India, Paisalo Digital is an NBFC registered with the Reserve Bank of India. The company has more than 65 lakh customers and 3,275 touchpoints throughout 22 states, making it a major driver of financial inclusion. It has completed transactions worth over Rs 3,400 crores in just two years and partners with leading banks such as SBI and Bank of India using the business correspondent model. With its technology-enabled platform and on-the-ground foothold, it is ideally poised to address the underserved segments of India's population.