Paisalo Digital Sparks Market Hype with ₹500 Million NCD Fundraise Approval

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Paisalo Digital Ltd, the NBFC owned by LIC, has charged up the market by sanctioning a fundraise of up to ₹500 million through the issue of listed, secured, non-convertible debentures (NCDs) on a private placement basis. This move is intended to strengthen the company's lending ability and drive its next growth phase.

Key Highlights:

Board Clearance Achieved: The board of the company, led by its Operations and Finance Committee, formally cleared the fundraising scheme, paving the way for Paisalo Digital to issue secured and listed NCDs with a maximum value of ₹500 million.
Market Response: The news of fundraising drove Paisalo Digital stock more than 4% higher in intra-day trade, showing high investor confidence in the company's growth trajectory and capital strategy.
Strong Financial Performance: The approval follows strong Q4 FY25 results, with standalone net profit increasing 25% year-on-year to ₹45 crore and net interest income rising 41% to ₹96 crore. Assets under management also hit a record ₹5,232.8 crore, up 14.1% year-on-year.
Dividend Declaration: Concurrent with the fundraising, Paisalo Digital declared a 10% final dividend for FY25, rewarding shareholders once again.
Promoter Confidence: The firm also announced the release of 7.5 million promised shares by promoter group Equilibrated Venture Cflow, which is an indication of greater promoter confidence and a better balance sheet.
Strategic Focus: The new money will help Paisalo Digital achieve its objective of growing its lending book, improve financial inclusion, and drive sustainable growth within the NBFC segment.