Non-banking finance company Paisalo Digital announced on Wednesday, March 11, that its board has approved the issuance of ₹100 crore through non-convertible debentures (NCDs). According to reports from Live Mint, the issue consists of a base offer of ₹50 crore with a green shoe option of another ₹50 crore in case of oversubscription. The debentures carry a coupon rate of 9.25% and are non-convertible in nature.
As reported by Live Mint, the company will issue up to 1 lakh NCDs, each having a face value of ₹10,000, aggregating to ₹100 crore. The NCDs are proposed to be listed on the BSE and have a tenure of 30 months. The debentures will be allotted by the company on March 18, with redemption at the end of 30 months from the date of allotment. The coupon or interest on these NCDs is payable monthly.
According to Live Mint, for the third quarter of the ongoing financial year, Paisalo Digital posted steady growth in profit and revenue while NPAs had moderated. The small-cap NBFC's PAT came in at ₹66.3 crore, representing a growth of 6% year-on-year. The company's total income saw an 18% increase to ₹240 crore. The total assets under management (AUM) jumped 16% YoY to ₹5,508.2 crore.
As reported by Live Mint, the company's asset quality showed significant improvement with gross NPA at 0.83% compared to 1.10% a year ago, while net NPA was at 0.66% versus 0.84% YoY. This improvement in asset quality metrics reflects the company's enhanced risk management and collection efficiency.
According to Live Mint, shares of Paisalo Digital, part of SBI Life's portfolio, have remained under pressure in the last two years. The small-cap NBFC stock under ₹50 has lost 11% year-to-date (YTD), 15% in six months, 10% in a year and 63% in two years. The stock ended 1.58% down on the BSE at ₹32.45 on March 11 amid a sharp decline in the Indian stock market's benchmark indices due to the Middle East conflict.
