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In a strategic move to strengthen its funding base, LIC-backed non-banking financial company Paisalo Digital has announced the allotment of 3,400 secured non-convertible debentures (NCDs) on August 8, 2025. The allotment was approved by the company’s Operations and Finance Committee and marks a significant step in its ongoing efforts to expand credit access and deepen financial inclusion across India.
The NCDs, each carrying a face value of ₹1 lakh, amount to a total issuance of ₹34 crore. With a competitive coupon rate and robust security structure, the offering is expected to attract institutional interest while supporting the company’s lending operations.
Key Highlights From The Debenture Allotment
- Total of 3,400 secured, unlisted, and unrated non-convertible debentures allotted
- Coupon rate fixed at 9.75 percent per annum, payable quarterly
- Tenure of the debentures is 36 months from the date of allotment
- Security backed by a first-ranking pari-passu charge on hypothecated loan receivables
- Security coverage maintained at 1.10 times the outstanding principal amount
Strategic Objectives Behind The Issuance
Paisalo Digital’s latest fundraising initiative is aligned with its broader strategy to:
- Enhance liquidity for expanding its last-mile credit delivery model
- Support micro-enterprise and small business lending across underserved regions
- Diversify funding sources beyond traditional bank lines
- Maintain asset quality and capital adequacy through secured instruments
The company has built a strong network of business correspondents and banking partnerships, including collaborations with State Bank of India and Bank of India. These alliances have enabled Paisalo to service over 59 lakh customers and initiate transactions worth more than ₹3,400 crore in just two years.
Performance Snapshot And Market Position
Paisalo Digital is listed on the BSE Smallcap index and currently trades below ₹50 per share. Despite recent volatility, the company has shown resilience in its financial performance:
- Q1 FY26 net profit rose 13.7 percent to ₹47.17 crore
- Total income for the quarter increased 17.2 percent year-on-year to ₹218.70 crore
- Interest income grew 21.7 percent to ₹200.88 crore
- Net non-performing assets stood at a healthy 0.66 percent
Shareholding data reveals that LIC owns a 1.12 percent stake in the company, while SBI Life Insurance holds a more substantial 8.96 percent equity. The company’s market capitalization currently stands at ₹2,982 crore.
Stock Movement And Investor Sentiment
Paisalo Digital’s stock opened in the green at ₹30.71 on the BSE, briefly touching ₹30.91 before dipping to ₹30.42 amid profit booking. The stock has corrected 53 percent over the past year and 38 percent year-to-date, but analysts note that the ₹29.5–₹30 zone has acted as a consistent support base.
The company’s recent fundraising and operational milestones may help revive investor confidence, especially if it sustains momentum beyond the ₹34–₹36 resistance levels.
Why This Matters For The NBFC Sector
- Demonstrates growing reliance on market instruments for NBFC funding
- Reflects investor appetite for secured, high-yield debt instruments
- Reinforces the role of NBFCs in driving financial inclusion and credit access
- Highlights the importance of robust security structures in debt issuance
Looking Ahead
Paisalo Digital’s focus on inclusive finance, technology-driven operations, and disciplined asset management positions it as a key player in India’s evolving NBFC landscape. The successful allotment of ₹34 crore in secured debentures is not just a funding milestone—it’s a signal of confidence in the company’s long-term vision and execution capabilities.
Sources: India TV News, ET Now, Livemint.
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