Penny Stock Under Rs 10 On Fire! THIS NBFC Stock Jumps 9% In Week | What's Fuelling The Rally?

Golden Legand Leasing and Finance Ltd. drew market attention after its shares rose 8.3% to ₹9.46 on Tuesday, following the company's announcement that it has incorporated a wholly owned subsidiary, Gullakkart Private Limited. The move signals the small-cap finance company's intent to build a stronger presence in digital lending and payment-linked financial services.

The stock touched an intraday level of about ₹9.50, extending gains for a second straight session. Investor interest appeared to be driven by the company's plan to use the new subsidiary for digital payment solutions and, subject to approvals, a possible Prepaid Payment Instrument licence from the Reserve Bank of India.

Golden Legand shares gain after digital finance push

In its exchange filing, Golden Legand Leasing and Finance said Gullakkart Private Limited has been incorporated as a wholly owned subsidiary. The company described the development as part of its broader strategy to strengthen its digital financial services ecosystem and expand its technology-enabled lending business.

The new subsidiary is expected to support the company's digital lending operations and undertake activities linked to digital payment solutions. Golden Legand also said the subsidiary intends to apply for a PPI licence from the RBI, subject to applicable regulatory approvals and compliance requirements.

A PPI licence allows authorised entities to issue prepaid payment instruments, which can be used to purchase goods and services, transfer funds or access payment-related services within the permitted regulatory framework. Such products include digital wallets, prepaid cards and other stored-value payment options, depending on the licence category and approval conditions.

For a finance company, a payments platform can help improve customer engagement beyond loan disbursement. If approved, the proposed platform could allow Golden Legand to offer payment convenience to borrowers and users within its digital ecosystem. However, the plan remains subject to regulatory clearance, and the company has not announced a launch timeline.

What the new subsidiary may mean for the business

The incorporation of Gullakkart Private Limited gives Golden Legand a separate vehicle to pursue digital payment activities. This structure may help the company ring-fence specific operations, build technology capabilities and comply with regulatory requirements linked to payment services, if the RBI application moves forward.

The company said the proposed PPI platform is expected to complement its existing lending business after the necessary approvals are received. It added that the platform could facilitate digital payment solutions for customers, improve convenience and strengthen its technology-driven lending ecosystem.

Golden Legand also informed exchanges that it would provide updates on material developments related to the proposed PPI platform as required under applicable regulations. For investors, this means the next key monitorables will include regulatory application progress, operational details, capital allocation and any clarity on revenue potential from the new business line.

The development comes at a time when digital financial services remain a closely watched theme in Indian markets. Lending companies, fintech firms and payment service providers continue to explore integrated models, although the sector operates under detailed regulatory oversight. RBI approvals, compliance systems and risk controls remain central to any payments-related expansion.

Financial performance shows sharp turnaround

The company's latest financial numbers also contributed to market interest. Golden Legand reported a significant improvement in performance for the quarter and financial year ended March 31, 2026. The turnaround was led by higher revenue from operations and a return to profitability after losses in the previous year.

For the fourth quarter of FY26, revenue from operations stood at ₹13.55 crore, compared with ₹1.54 crore in the corresponding quarter of the previous year. Profit after tax for the quarter came in at ₹2.64 crore, against a net loss of ₹1.45 crore in the same period of FY25.

For the full financial year FY26, the company reported revenue from operations of ₹18.36 crore. This was sharply higher than ₹93.44 lakh recorded in FY25. Profit after tax for FY26 stood at ₹10.30 crore, compared with a net loss of ₹2.20 crore in the previous financial year.