LIC-owned NBFC stock approves raising up to ₹50 crore via NCDs. Details here

LIC-backed non-banking financial company (NBFC) Paisalo Digital has approved raising funds up to ₹50 crore through the issuance of Non-Convertible Debentures (NCDs). The fundraising proposal was cleared by the company’s Operations and Finance Committee at its meeting held on May 15, 2025, as per a regulatory filing.

The proposed issue will take place through private placement on the Electronic Book Provider (EBP) platform, and involves the issuance of up to 5,000 NCDs, each with a face value of ₹1 lakh. The base size of the issue is ₹25 crore, with an option to retain oversubscription of another ₹25 crore, taking the total potential raise to ₹50 crore.

The debentures will carry a coupon rate of 10 percent per annum and have a maturity period of 24 months. Interest payments will be made monthly, and the principal will be redeemed at par at the end of the term. The NCDs are proposed to be listed on the BSE.

May 22 Allotment, Secured Against Loan Receivables

The tentative date of allotment is May 22, 2025, subject to regulatory approvals. The issue will be secured by a first-ranking pari-passu charge on hypothecated receivables, with a security cover of at least 1.10 times the principal amount outstanding.

In the event of any delay in the payment of interest or principal, the company will offer an additional 2 percent per annum coupon as compensation. Paisalo clarified that there are no special rights or privileges attached to the instrument and that the proposal has not been modified or cancelled.

The issuance is being made in accordance with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

LIC, SBI Life Among Major Shareholders

Paisalo Digital counts some heavyweight institutional investors among its shareholders. LIC holds 77.6 lakh shares, representing a 1.17 percent stake, which would drop slightly to 1.03 percent assuming full conversion of convertible securities. Meanwhile, SBI Life Insurance owns over 6.21 crore shares, holding a 9.36 percent stake. Post conversion, its stake would stand at 8.26 percent, based on data from the stock exchanges.

Stock Rebounds in May but Still Down Over 47 Percent YoY

Despite the positive announcement, Paisalo Digital’s stock has been under pressure, shedding 47 percent over the last one year. The stock fell for five consecutive months, including 5.2 percent in April, 8 percent in March, 14.3 percent in February, 13.3 percent in January, and 2.4 percent in December.

However, May brought some respite with the stock rising 6 percent month-to-date, signaling a possible trend reversal. Still, it remains over 57 percent below its 52-week high of ₹81.95, touched in July 2024. On the upside, it has recovered 17 percent from its 52-week low of ₹29.75, hit in April 2025.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.