LIC-Backed NBFC Raises Rs 50 Crore

Shares of Paisalo Digital Ltd, a small-cap non-banking financial company (NBFC) backed by Life Insurance Corporation of India (LIC), edged up over 1.5%

on Tuesday after the company’s board approved a ₹50 crore fundraising through privately placed non-convertible debentures (NCDs). The stock rose 1.59% to ₹31.30 apiece on the BSE, even as Indian benchmark indices remained under pressure.

Board Approves ₹50 Crore NCD Issue

In a regulatory filing, the company said its Operations and Finance Committee had cleared the issuance of up to 5,000 NCDs at a face value of ₹1 lakh each, aggregating to ₹50 crore. This includes a base issue of ₹25 crore and a green shoe option of ₹25 crore, to be offered via the Electronic Bidding Platform (EBP).

Key terms of the issue include:

• Coupon Rate: 9.75% per annum (payable quarterly)
  
  
• Tenure: 36 months
  
  
• Tentative Allotment Date: 8 August 2025
  
  
• Redemption: On maturity
  
  
• Listing: Proposed on the BSE
  
  

Share Price Performance: A Mixed Picture

Despite Tuesday’s gain, Paisalo Digital has seen significant erosion in shareholder value over the medium term:

• 1 Month: +3%
  
  
• 3 Months: –7%
  
  
• 6 Months: –29%
  
  
• YTD 2025: –37%
  
  
• 1 Year: –50%
  
  
• 3 Years: –21%
  
  

At 12:00 PM, the stock was trading at ₹31.29 on the BSE.

While the latest NCD fundraising reflects the company’s effort to secure capital amid tough market conditions, analysts caution that persistently weak price action and underperformance versus sector peers could limit upside unless lending momentum, profitability, and asset quality improve.

LIC’s continued holding provides a degree of credibility, but market watchers are awaiting more visible operational traction.


Paisalo Digital Ltd primarily focuses on small-ticket loans to micro and small enterprises, particularly in semi-urban and rural areas. It also has a co-lending agreement with SBI, aimed at expanding its reach in financial inclusion initiatives.