Penny stock under Rs 50: Paisalo Digital Ltd approved allotment of 4,000 NCDs
DSIJ Intelligence-1 / 09 Dec 2025/ Categories: Penny Stocks, Trending
Paisalo Digital Limited is engaged in the business of providing convenient and easy loans to the financially excluded at the bottom of India's economic pyramid.
Paisalo Digital Limited's Operations and Finance Committee has announced key decisions regarding debentures following its meeting on December 9, 2025. The company approved the immediate allotment of 4,000 Secured, Redeemable, Non-Convertible Debentures (NCDs), each with a face value of Rs 1,00,000, aggregating to Rs 40 crore. These debentures, issued via private placement, carry an 8.50 per cent p.a. coupon payable quarterly and have a 3-year tenure, maturing on December 9, 2028. The NCDs are secured by a first-ranking exclusive charge on loan receivables, requiring the security value to be maintained at 1.10 times the outstanding principal.
In addition to the allotment, the Committee approved the prospective issuance of up to 5,000 Secured NCDs, also with a face value of Rs 1,00,000 each, totalling up to Rs 50 crore. This includes a base issue of Rs 25 crore and a Green Shoe Option of up to Rs 25 crore, to be raised through a private placement using the EBP Platform. These future NCDs will have a 2-year tenure, tentatively allotting on December 15, 2025, and offering an 8.45 per cent p.a. coupon, with quarterly interest payments. Like the allotted debentures, they will be listed on the BSE Limited and secured by hypothecated loan receivables at a 1.10 times coverage ratio.
About the Company
Paisalo Digital Limited is engaged in the business of providing convenient and easy loans to the financially excluded at the bottom of India's economic pyramid. The company has a wide geographic reach, with a network of 4,380 touchpoints across 22 states & UTs in India. The company’s mission is to simplify small-ticket size income generation loans by establishing ourselves as a trusted, high-tech, high-touch financial companion for the people of India.
The company reported strong financial growth for the quarter ending September 30, 2025. The company's Assets Under Management (AUM) demonstrated robust growth, increasing 20 per cent year-over-year (YoY) to Rs 5,449.40 crore. This growth was supported by a significant increase in disbursements of 41 per cent YoY to Rs 1,102.50 crore. Overall, the company's Total Income grew by 20 per cent YoY to Rs 224 crore, with Net Interest Income (NII) rising by 15 per cent YoY to Rs 126.20 crore. The expansion efforts are evident in the increased geographical reach, which grew to 4,380 touchpoints across 22 states, and the customer franchise expanded to a record of approximately 13 million, adding about 1.8 million customers during the quarter. The company also saw USD 4 million of its maiden $50 Mn Foreign Currency Convertible Bond (FCCB) converted into share capital during the quarter.
The company maintained a stable and healthy asset quality, with Gross Non-Performing Assets (GNPA) standing at a low 0.81 per cent and Net Non-Performing Assets (NNPA) at 0.65 per cent. This stable asset quality is complemented by a strong collection efficiency of 98.4 per cent for the quarter. Furthermore, Paisalo Digital's financial position remains robust, highlighted by a Capital Adequacy Ratio of 38.2 per cent (with Tier 1 capital at 30.3 per cent), which significantly exceeds regulatory requirements. The Net Worth also saw a substantial increase, growing 19 per cent YoY to Rs 1,679.90 crore. These results underscore Paisalo Digital's effective strategy in leveraging its digital capabilities and three decades of experience to achieve sustainable, high-growth lending to the financially excluded while maintaining strict control over asset quality and capital strength.
This integration of High Tech: High Touch, a customer-centric approach, and data analytics empowers Paisalo to deliver tailored, scalable solutions while minimising risks and maintaining the highest standards of governance and regulatory adherence. The stock is up 28.33 per cent from its 52-week low of Rs 29.40 per share. As of September 2025, SBI Life Insurance Co. Ltd owns a 6.83 per cent stake.
Disclaimer: The article is for informational purposes only and not investment advice.