LIC-Owned NBFC in Focus After ₹50 Crore NCD Allotment

LIC-backed non-banking financial company (NBFC) Paisalo Digital will be in focus on Wednesday following the allotment of ₹50 crore worth of non-convertible debentures (NCDs). The small-cap stock closed 2.07% lower at ₹31.16 on Tuesday, compared to its previous close of ₹31.82.

According to the company’s regulatory filing with the BSE, Paisalo Digital allocated 5,000 NCDs of ₹1 lakh each through a private placement on 3 June 2025. These secured, unlisted debentures carry a coupon rate of 10% per annum, payable monthly, and have a tenure of 24 months. The redemption date has been set for 3 June 2027.

Key Highlights:

Total Issue Size: ₹50 crore

Instrument Type: Non-Convertible Debentures (NCDs)

Coupon Rate: 10% p.a., paid monthly

Maturity Date: 3 June 2027

Penalty on Delay: Additional 2% interest per annum for defaults exceeding three months

NCDs are fixed-income instruments that companies use to raise debt without offering equity dilution. While they offer attractive returns, they do not carry conversion rights into company shares.

Stock Performance Overview:

Paisalo Digital has delivered over 230% returns to investors over the past five years. However, the stock has seen significant correction recently:

1-Year Return: Down 52.40%

Year-to-Date (2025): Down 36.93%

52-Week High: ₹81.95 (12 July 2024)

52-Week Low: ₹29.75 (7 April 2025)

Market Cap: ₹2,811 crore (as of 3 June 2025)

The NCD allotment update was made public during Tuesday’s afternoon trading session, which may have contributed to the dip in share price.

Disclaimer: This article is for informational purposes only. The views and recommendations expressed are those of individual analysts or brokerage firms and do not represent official financial advice. Please consult a certified financial advisor before making investment decisions.