On Tuesday, May 13, 2025, shares of Paisalo Digital, a non-banking finance company (NBFC) owned by LIC, surged by over 4% during intraday trading. This uptick followed the announcement of an upcoming board meeting set for May 15, 2025, where directors will discuss a proposal for raising funds through the issuance of secured non-convertible debentures. This small-cap stock, valued under ₹50, has been making waves in the market.
Upcoming Board Meeting
Paisalo Digital made a significant announcement just after the market closed on Monday. The company stated, “We would like to inform you that the meeting of the Operations and Finance Committee of the Board of Directors is scheduled for May 15, 2025, to consider and approve the fundraising proposal via listed, secured non-convertible debentures through private placement.” This news has sparked interest among investors, contributing to the stock’s recent gains.
Share Pledge Update
In another development, Equilibrated Venture Cflow, part of the promoter group, disclosed the release of a pledge on some of its shares. On May 12, a total of 7.5 million shares, representing 0.83% of Paisalo Digital’s equity, were unencumbered. Following this release, the remaining pledged shares by Equilibrated Venture Cflow now stand at 83,909,002.
Impressive Q4 Results
Recently, Paisalo Digital shared its financial results for the quarter ending March 2025. The company reported a 25% year-on-year increase in standalone net profit, rising to ₹45 crore, up from ₹36 crore in the same quarter last year. Notably, the net interest income (NII) for the quarter reached ₹96 crore, marking a 41% increase compared to the previous year, while overall interest income climbed to ₹178.09 crore, up from ₹147.73 crore.
Key Financial Highlights:
- AUM: Achieved a record ₹5,232.8 crore, a 14.10% increase from ₹4,586 crore in Q4 FY 2024.
- Dividend Proposal: The board has recommended a 10% dividend, equating to ₹0.10 per equity share of face value ₹1.00 for FY25.
Share Price Movement
Following a 10% rally in the previous session, Paisalo Digital’s shares climbed an additional 4% today, bringing the total two-day increase to 14%. The stock opened at ₹34.13, slightly below the previous close of ₹34.14, and peaked at ₹35.62 during the day, marking a 4.3% rise.
Recent Performance:
- One-Month Gain: Up 12.33%.
- One-Year Decline: Down 43%.
The Life Insurance Corporation of India (LIC), a major institutional investor, currently holds a 1.17% stake in Paisalo Digital as of the end of March 2025. With these developments, investors are keenly watching the stock’s trajectory in the coming weeks.
