Paisalo Digital Ltd., one of India's top non-banking financial institutions (NBFCs), is mulling fund-raising avenues via issuance of equity. This is as the company looks to strengthen its capital base and accelerate growth amid recent headwinds in the market.
Major Points:
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Fundraising Proposals: Paisalo Digital is mulling the use of equity issuance to raise funds, possibly through channels such as Qualified Institutional Placement (QIP) or preferential allotments.
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Market Challenges: The firm recently pulled back a preferential issue of convertible warrants because of market volatility and weakening share prices, which have plummeted from their highs.
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Financial Performance: In spite of market challenges, Paisalo Digital reported robust quarterly results, with net sales and profits beating expectations. The firm has a strong distribution network in rural and semi-urban regions.
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Investor Appetite: Institutional investors such as SBI Life Insurance and LIC have substantial shares, indicating faith in the company's future growth.
Sources: Business Standard, CNBC TV18, Good Returns