SBI, LIC-owned small-cap stock jumps 5% after allotment of shares against foreign bonds

Stock market today: Small-cap stock Paisalo Digital gained over 5 per cent in intra-day trade on Wednesday, January 17 after the company approved the allotment of shares upon conversion of Foreign Currency Convertible Bonds (FCCB).

The company in an exchange filing today said, "... we wish to inform you that on January 15, 2025, the FCCB Committee of Board of Directors of Paisalo Digital Limited has considered and approved the allotment 37,35,274 Equity Shares of Face Value of Re. 1/- each upon conversion of 2000 Foreign Currency Convertible Bonds ("FCCBs") as per the Conversion Notice received in accordance with the terms of the FCCBs set out in the Offering Circular."

Following the allotment of these equity shares, the company's fully paid-up capital will increase.

“The fully paid-up equity capital of the Company has increased from Rs. 89,80,43,980/- consisting of 89,80,43,980 Equity Shares of Re 1/- each to Rs. 90,17,79,254/- consisting of 90,17,79,254 Equity Shares of Re 1/- each,” the exchange filing added.

Stock Price Impact

Paisalo Digital share price jumped 5.44 per cent to the day's high of ₹46.70 apiece on the BSE. The small-cap NBFC stock had opened at ₹43.51, slightly below its previous close of ₹44.29. The stock, despite today's rise, is trading close to its 52-week low level of ₹40.40.

Paisalo Digital shares have eroded investor wealth off late, with the stock down 21 per cent in the last one month and 42 per cent in the last six months. Even on a one-year basis, the stock's performance has been bleak, declining 13 per cent.

Despite the bleak performance, some of the biggest domestic investors hold a stake in this new-age stock. State Bank of India held 77,29,786 shares of the company at the end of the September 2024 quarter, representing a 1.23 per cent stake.

Meanwhile, India's biggest DII, Life Insurance Corporation of India (LIC), held a 1.35 per cent stake or 84,73,644 shares of the company. SBI Life Insurance too was among its key shareholders as of the September quarter, holding a massive 9.92 per cent stake or 6,24,14,495 shares.

The company is yet to release its December 2024 quarter shareholding pattern.

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