Paisalo Digital Redeems ₹1 Crore NCDs Early, Reducing Long-Term Debt
The share price of Paisalo Digital, a multibagger small-cap non-banking financial company (NBFC) partly owned by SBI Life Insurance Company, is expected to be in focus on Tuesday, January 27. This comes after the company announced it has redeemed ₹1 crore worth of unlisted, unsecured redeemable non-convertible debentures (NCDs) by exercising a call option well ahead of schedule. The early redemption is set to reduce the company's long-term debt significantly before the instruments' original maturity date.
Early Redemption Details and Exchange Filing
In an exchange filing dated January 23, Paisalo Digital informed the bourses that it had partly redeemed 10 NCDs under Series PDL-09-2023, aggregating to ₹1 crore. These debentures originally carried a maturity date of September 2, 2033. The company stated, "We wish to inform that the Company has partly redeemed, by opting the call option, 10 Unsecured Unlisted Redeemable Non-Convertible Debentures out of total NCDs under Series PDL-09-2023, aggregating to an amount of Rs. 1 crore, having an actual maturity date of September 02, 2033."
This early repayment occurs nearly seven years before the scheduled maturity in 2033, showcasing the company's proactive debt management strategy. According to the filing, the aggregate amount redeemed stood at ₹1 crore, with no changes announced to the remaining debentures under this series. This move is likely to enhance the company's financial flexibility and improve its balance sheet health.
Recent Fundraising and Capital Efficiency Efforts
Earlier this year, Paisalo Digital raised ₹188.5 crore as part of its ongoing efforts to optimise funding costs, improve capital efficiency, and support business expansion. The small-cap NBFC mobilised these funds during the third quarter through its latest listed issuances, securing an annual return on investment (ROI) of 8.5%.
In an exchange filing dated January 6, the company highlighted that it had "successfully raised nearly ₹188.5 crore at an annual ROI of 8.5% through its latest listed issuances in Q3." The fundraise underscores Paisalo Digital's strong credit profile, prudent risk management practices, and solid balance-sheet position. The capital infusion is expected to help lower the overall cost of funds, reinforce the medium-term capital base, and expand lending capacity, positioning the company for future growth.
Shareholding Pattern: SBI Life and FPIs Hold Significant Stakes
According to data available on the Bombay Stock Exchange (BSE), SBI Life Insurance Company held 6,21,14,267 shares of Paisalo Digital, representing a 6.83% stake in the company, at the end of the September quarter of the current financial year. This significant ownership by a major institutional investor adds credibility to the NBFC's operations.
Foreign portfolio investors (FPIs), on a cumulative basis, owned close to 19 crore shares, accounting for 20.89% of the company's total voting rights as of the end of the second quarter of FY26. The substantial FPI interest indicates international confidence in Paisalo Digital's business model and growth prospects.
Stock Performance: Multibagger Returns Amid Recent Corrections
Paisalo Digital's share price touched a 52-week high of ₹46.50 in February 2025, while the 52-week low of ₹29.40 was recorded in June 2025. Over the past year, the stock has declined by 25%, with additional falls of 17% over the last three months and 8% in the past one month, reflecting broader market volatility and sector-specific challenges.
Despite these recent corrections, the NBFC stock has delivered multibagger long-term returns, having multiplied investor wealth by over four times. Since its listing, Paisalo Digital has posted impressive gains of 1,574.21%, underscoring its potential as a high-growth small-cap investment. This performance highlights the stock's resilience and ability to generate substantial returns over extended periods, even amid short-term fluctuations.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
