Paisalo Digital Moves to Raise ₹2,700 Crore in New Funding Initiative

In an exciting development for investors, Paisalo Digital, a prominent small-cap non-banking financial company (NBFC), revealed plans on May 2 to secure up to ₹2,700 crore through the issuance of equity shares, foreign currency bonds, and various other securities. This announcement came during the company’s first extraordinary general meeting for the 2025-26 fiscal year (FY26).

Fundraising Strategy Overview

The NBFC, backed by major stakeholders such as SBI Life Insurance and the Life Insurance Corporation of India (LIC), expressed its intention to raise funds through a range of methods. According to a regulatory filing, the company stated:

"We aim to raise funds via the issuance of equity shares, foreign currency convertible bonds, and other eligible securities in multiple tranches for an aggregate amount of up to ₹27,000 million."

This strategic move indicates the company’s commitment to expanding its financial capabilities and meeting market demands.

Shareholding Breakdown

Paisalo Digital’s ownership structure reveals significant backing from established financial institutions:

• LIC holds 77,59,511 shares, translating to a 1.17% stake in the company. If all convertible securities are fully converted, this could adjust LIC’s stake to 1.03%.
• SBI Life Insurance possesses 6,21,14,267 shares, making up 9.36% of the total shares. Following possible conversions, their stake may adjust to 8.26%.

Stock Performance Insights

On the day of the announcement, Paisalo Digital’s shares opened at ₹33.84, hitting an intraday low of ₹31.96 before closing at ₹32.41—a modest 0.71% increase on the BSE. With a market capitalization of ₹2,923.77 crore, the stock has experienced a downturn of over 6% in the past month and nearly 35% year-to-date.

Recent Achievements and Client Reach

Earlier in the year, Paisalo Digital reported impressive growth, having served over 59 lakh customers with transactions surpassing ₹3,400 crore in just two years. This accomplishment highlights the company’s robust network of collaborations with major banking partners, including SBI and Bank of India.

Core Business and Future Prospects

As a small-cap NBFC, Paisalo Digital provides a variety of financial services, including business, income, and mobility loans. The company focuses on serving Indian clients and has forged partnerships with institutions like Union Bank of India to support loans in priority sectors. Major investors include Vanguard Total International Stock Index Fund, SBI, and LIC, underscoring the confidence in Paisalo Digital’s future growth and stability.

This move to raise funds not only reflects the company’s ambition but also positions it strategically in a competitive market. Investors should keep an eye on how these developments unfold as Paisalo Digital continues to evolve in the financial landscape.