LIC-Owned NBFC Issues ₹34 Crore NCDs – Stock Under ₹50 // Indian Market Important News
Paisalo Digital Ltd, a small finance company partly
owned by LIC, has announced it will raise ₹34 crore by issuing Non-Convertible
Debentures (NCDs).
Key Details of the New NCDs
- Total
amount: ₹34 crore
- Number
of NCDs: 3,400
- Face
value: ₹1 lakh each
- Interest
rate: 9.75% per year, paid every three months
- Time
period: 3 years from allotment
- Security:
Company’s loan receivables will be kept as security, with 1.10× coverage
- Penalty:
If payment is delayed for more than 3 months, extra 2% interest will be
charged
Ownership Information
- LIC
owns about 1.12% of the company (77.6 lakh shares)
- SBI
Life Insurance owns 8.96% of the company
Recent Financial Performance (April–June 2025 Quarter)
- Net
profit: ₹47 crore (up 13.5% from ₹41.5 crore last year)
- Total
income: ₹218.7 crore (up 17.2% from ₹186.6 crore last year)
- Interest
income: ₹200.9 crore (up 21.7% from last year)
This shows the company is growing steadily and earning more
from its lending business.
Stock Price Movement
On the day of the announcement:
- Opening
price: ₹30.71
- Highest:
₹30.91
- Lowest:
₹30.42
- Support
level: Around ₹29.50–₹30
- Resistance
level: Around ₹34–₹36 (If it crosses ₹36, it may go higher)
The share price is still trading below ₹50.
Comparison with Earlier NCD Issue (June 2025)
In June 2025, Paisalo Digital issued ₹50 crore worth of
NCDs. Here’s how it was different:
|
Feature |
June 2025 NCDs |
August 2025 NCDs |
|
Amount |
₹50 crore (5,000 NCDs) |
₹34 crore (3,400 NCDs) |
|
Interest rate |
10% yearly |
9.75% yearly |
|
Interest payment |
Monthly |
Quarterly |
|
Tenure |
2 years |
3 years |
|
Security |
1.10× cover on loan receivables |
Same |
|
Penalty |
2% extra if payment delay >3 months |
Same |
The new issue offers slightly lower interest and less
frequent payments but has a longer duration.
Why This Matters
For the Company
- Raising
money through NCDs helps in funding loans for customers and business
expansion
- Quarterly
payment reduces cash pressure compared to monthly payments
- Longer
tenure means funds are available for a longer time without repayment
For Debt Investors
- Attractive
interest rate (9.75%) with security cover
- Quarterly
income instead of monthly
- Safer
than unsecured debt because assets are pledged as security
For Shareholders
- Shows
company is trusted by investors to raise debt
- Strong
financial results support future growth
- Stock
may rise if it breaks the ₹36 resistance level
Company’s Stability
- Paisalo
Digital has also been paying interest on its foreign currency bonds
(worth USD 48 million) without delays
- For
FY 2025, sales were ₹711 crore and profit was ₹200 crore (up 12%
year-on-year)
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