Small-cap stock under ₹50: LIC-owned small-cap NBFC raises ₹30 crore from SBI

Small-cap stock under ₹50: Paisalo Digital on Wednesday announced that its board of directors has approved fundraising via the issuance of Commercial Papers (CP) to the State Bank of India (SBI).

The Operations and Finance Committee of the Board of Directors of Paisalo Digital has sanctioned the issuance of CPs totalling up to ₹90 crore via private placement.

It has specifically approved the issuance of 600 listed CPs, each with a face value of ₹5 lakh, amounting to ₹30 crore, to the State Bank of India.

These CPs, priced at ₹4,86,653.50 each, offering a yield of 11% will reach maturity in 91 days, with an allotment date set for March 19, 2025. The redemption for CPs is scheduled to take place on June 18, 2025, with IDBI Bank Ltd serving as the Initial Placement Agent (IPA).

As of December 2024, SBI Life Insurance Co. Ltd held a 9.87% stake in Paisalo Digital, while Life Insurance Corporation of India (LIC) held a 1.35% ownership stake.

Paisalo Digital is a publicly-traded NBFC authorised by the Reserve Bank of India. It boasts a strong distribution presence in rural and semi-urban areas of India.

With more than 6.5 million customers and 3,275 touchpoints across 22 states, Paisalo leads in the distribution of credit and income-generating loans. Over a period of two years, it has facilitated transactions exceeding ₹3,400 crore, building a customer base that surpasses 5.9 million, which reflects its dedication to promoting financial inclusion.

Utilising a business correspondent model and forming strategic alliances with banks such as SBI and Bank of India, along with advanced technology and a focus on customer service, Paisalo effectively serves underserved regions and delivers banking solutions to the underbanked population in India.

Paisalo Digital share price today

Paisalo Digital share price today opened at ₹35.49 apiece on the BSE. The stock touched an intraday high of ₹35.50 per share, and an intraday low of ₹34.50 per share.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities stated that Paisalo Digital share price has been in a prolonged downtrend, correcting 65.6% from its 12-month high.

“Paisalo Digital stock remains structurally weak, showing no signs of a sustainable recovery. While a dead cat bounce toward the 50-day EMA at 41 is possible, fresh buying should be avoided. The overall trend remains bearish, and any short-term rallies are likely to face selling pressure,” Jain said.

He suggested traders should wait for a stronger reversal signal before considering any long positions in Paisalo Digital shares.

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