On Tuesday, Paisalo Digital experienced a notable increase in its share price, climbing over 3% following the announcement of a significant investment from the State Bank of India (SBI). The shares peaked at ₹36.96 each on the BSE, reflecting a 3.24% rise. This surge comes as the small-cap Non-Banking Financial Company (NBFC) has secured a placement of commercial papers worth more than ₹29 crore from SBI.
Investment Boost from SBI
Paisalo Digital’s Board of Directors, specifically the Operations and Finance Committee, confirmed the allotment of 600 commercial papers (CPs) to SBI on March 11. These CPs, which are short-term debt instruments, are often utilized by companies to generate funds. Banks like SBI tend to invest in these instruments as a strategy for liquidity management or to gain short-term earnings.
- Commercial Paper Details:
- Face Value: ₹5 lakh each
- Issue Price: ₹4,86,594.50 per CP
- Total Issue Value: ₹29,19,56,700
- Redemption Value: ₹30 crore
- Tenure: 91 days from allotment
- Yield: 11.05%
- Allotment Date: March 11, 2025
- Maturity Date: June 10, 2025
This strategic move not only provides Paisalo Digital with essential short-term funding but also allows SBI to earn returns from its investment.
LIC’s Stake in Paisalo Digital
In addition to SBI’s involvement, the Life Insurance Corporation of India (LIC) holds a significant stake in Paisalo Digital, owning more than 1% of the company. As of the end of December 2024, LIC possessed 84,73,644 equity shares, translating to a 1.35% ownership.
Recent Stock Performance
While Paisalo Digital has seen a recent uptick, its stock has faced challenges. Over the past month, shares have decreased by 11% and have fallen 27% year-to-date. The stock has plummeted 40% in the last six months and 59% over the past year. However, a longer-term perspective reveals a 23% increase in the stock price over the last two years, with an impressive 270% rise over five years.
As of 3:05 PM, shares of Paisalo Digital were trading at ₹36.04, reflecting a modest 0.67% increase for the day.
For further insights on market trends and investment strategies, check out our articles on gold vs. equity and the latest updates on IndusInd Bank.
