• Source:JND
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Paisalo Digital, a non-banking financial company (NBFC) supported by LIC, has revealed plans to use non-convertible debentures (NCDs) to raise up to Rs 50 crore. According to a regulatory filing, the proposal was approved at a meeting of the company's Operations and Finance Committee on May 15, 2025. The NCDs will be issued via private placement on the Electronic Book Provider (EBP) platform, each having a face value of Rs 1 lakh. With a greenshoe option to keep an additional Rs 25 crore, the base issue size is Rs 25 crore. The securities will have a 24-month maturity, a 10% annual coupon, and monthly interest payments. The BSE will list them.

Allotment for May 22, Secured Against Receivables

Subject to regulatory approvals, the tentative allotment is set for May 22. A first-ranking pari-passu charge on hypothecated loan receivables with a minimum 1.10x security cover will be used to secure the issue. An extra 2% annual coupon will be applied if principal or interest payments are delayed.

"We wish to inform you that the Board of Directors of the Company by circulation held today, i.e. Thursday, May 15, 2025, has inter-alia, considered
and approved the allotment of 14510 unrated, unlisted, secured NCDs of Series V of face value of Rs. 1,00,000/- each at an issue price of Rs. 1,00,000/- each aggregating to INR 145,10,00,000 (Indian Rupees One Hundred Forty Five Crores Ten Lakhs Only) on Private Placement basis in terms of Private placement cum application letter," the company said in a filing

Instrument Rights and Regulatory Compliance

Paisalo clarified that the NCDs are not associated with any particular rights or privileges. The issuance conforms with the 2015 Listing Obligations and Disclosure Requirements (LODR) Regulations of SEBI. The business affirmed that there has been no change or cancellation to the proposal.

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Stock Performance

With a 47% year-over-year decline, Paisalo Digital's stock is still under pressure. It fell for five months in a row, falling 13.3% in January and 14.3% in February. In May, there has been some improvement, though.

Major Investors' Lives with LIC and SBI

SBI Life owns more than 6.21 crore shares (9.36%), whereas LIC owns 77.6 lakh shares (1.17%). Their respective stakes would be slightly diluted to 1.03% and 8.26% following the full conversion of convertible securities.

Also Read: Gensol Shares Jump 5% To Hit Upper Circuit Amid Insolvency Turmoil; Details

Disclaimer: This is just a piece of news about recent development. Jagran does not advise investing. Please take expert opinion before investing.