Owned By SBI Life & LIC, Paisalo Digital Fully Redeems Rs 30 Crore Commercial Paper On Maturity

Paisalo Digital Limited has announced the allotment of Commercial Papers (CPs) on July 3, 2025, as approved by its Operations and Finance Committee. The CPs have been issued via private placement and are listed. A total of 600 CPs, each with a face value of Rs 5,00,000, have been allotted to the State Bank of India. The CPs carry a yield of 11% and were issued at a price of Rs 4,90,683.50 per unit, amounting to a total issue value of Rs 29.44 crore. The redemption value at maturity stands at Rs 30 crore. These CPs have a tenure of 63 days, with the maturity date set for September 4, 2025. IDBI Bank Ltd. has been appointed as the Issuing and Paying Agent (IPA).

With effect from July 31, 2025, the 7.5% Foreign Currency Convertible Bonds (FCCBs) of Paisalo Digital Limited, which are due in 2029 (ISIN: XS2952463086), were listed on the India International Exchange's (IFSC) Limited "Global Securities Market." The US$50,000,000 issue amount of these secured bonds was issued on December 10, 2024, and they will mature on December 10, 2029. The trustee for this matter is GLAS Trust Company LLC.

Paisalo Digital Limited, a non-banking financial company approved by the Reserve Bank of India, recently confirmed that it has fully redeemed, ahead of schedule, its Rs 30-crore commercial paper issue, underlining its disciplined approach to debt management. The papers, registered under ISIN INE420C14169 and listed on BSE Ltd., were originally set to mature on 18 June 2025.

Earlier, on June 3, 2025, its Operations and Finance Committee approved the private placement of 5,000 rated, listed, senior, secured, redeemable, taxable non-convertible debentures. Each debenture is priced at Rs 1 lakh, bringing the total offer to Rs 50 crore. Investors will receive a monthly coupon set at 10% per year, and the bonds will mature twenty-four months later, on June 3, 2027. The issue is secured by a first-ranking pari-passu charge on loan assets, with cover standing at 1.10 times the principal. Principal repayment will occur in full at maturity, although late redemptions beyond three months will attract an extra 2% per annum.

As a result, Paisalo is now catching the eye of much larger investors. By March 2025, foreign institutional owners had lifted their combined holding to 10.38%, having acquired 88.5 lakh shares since December 2024.

Among local funds, SBI Life Insurance Co. Ltd holds 9.36%, while Life Insurance Corporation of India still owns a 1.17% stake. The stock now trades 6.6% above its 52-week low of Rs 29.75, a sign that confidence is building.

Paisalo Digital reported a total income of Rs 1,952.9 crore in Q4 FY25 (Jan-Mar 2025), which was a sequential fall of 4.2% from Rs 2,037.5 crore in Q3 FY25 but a YoY rise of 65.5%. Operating expenses reached Rs 1,308.7 crore, up 12.5% QoQ and 53.7% YoY. While net profit (PAT) dropped 41.4% QoQ to Rs 366.1 crore, it was 77.2% higher YoY at Rs 366.1 crore. Profit before tax (PBT) fell 39.7% QoQ to Rs 496.1 crore, but it improved 78.1% YoY. In Q4FY25, earnings per share were Rs 0.80, representing a 14.3% QoQ + 60% YoY growth.

With a market cap of over Rs 2,700 crore, Paisalo Digital stands out because of its wide network and inclusion-first model. Active in 22 states and 3,275 customer points, it serves more than 65 lakh people. Over the past two years, it has handled more than Rs 3,400 crore in transactions, and the client count has risen past 59 lakh.

Based on the profitability indicators for the fourth quarter, the annualized Return on Equity (ROE) was 12.96%, while the ROA was 3.89%. The GNPA/NNPA growth to 0.99%/0.76% indicates a proactive approach to credit management, while the company's capital adequacy is stable at about 39-42%.