Small-cap stock under ₹50: NBFC allots 600 commercial papers to SBI to raise funds. Details here

Small-cap stock under ₹50: Paisalo Digital, a small-cap non-banking finance company (NBFC), wherein India's biggest insurer — Life Insurance Corporation of India (LIC) — holds a stake, announced raising funds via allotment of commercial papers (CPs) to the State Bank of India (SBI) on Wednesday, July 3.

The commercial papers were allotted today on a private placement basis to SBI and will be redeemed on September 4, following a 63-day tenure. According to the filing on the exchanges, Paisalo Digital allotted 600 commercial papers to SBI, having a face value of ₹5 lakh each. These CPs have a yield of 11%.

The issue price of each commercial paper is at ₹4,90,683.50 apiece, a discount to the face value, resulting in a total issue value of ₹29.44 crore. On redemption, SBI will receive ₹30 crore from Paisalo Digital.

IDBI Bank is acting as an intermediary to ensure that issuance and payment are done smoothly.

As of the March 2025 quarter, LIC held a 1.17% stake in Paisalo Digital. Meanwhile, another insurer — SBI Life Insurance Company owned a 9.36% stake.

Paisalo Digital Share Price Trend

Paisalo Digital shares remained rangebound in trade today, with the stock gyrating in a tight range of ₹31.40 to ₹30.64 apiece.

The small-cap NBFC stock opened at ₹31.31, higher than the last close of ₹30.93 per share and hit the day's high of ₹31.40. However, the gains soon fizzled, and the stock was trading flat with a negative bias around 12:23 pm.

Paisalo Digital share price has struggled over the last one year, as it has lost 58% of its value during this period. The small-cap stock below ₹50 is also down 37.5% on a year-to-date (YTD) basis and 11.5% in the last three months.

However, on a longer time frame of five years, it has emerged as a multibagger stock, offering 183% returns to investors.

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