Penny stock under Rs 50: Paisalo Digital Ltd revoked 25,00,000 pledge shares used as loan collateral

Paisalo Digital Limited has announced that 25,00,000 equity shares (representing 0.27 per cent of the total share capital) used as collateral for company loans have been released from pledge. This revocation was executed by the Operations and Finance Committee and involves shares previously encumbered by the promoter group entity, EQUILIBRATED VENTURE CFLOW PVT. LTD., whose total holding stands at 18,67,63,880 shares (or 20.53 per cent of the company's share capital). The release of these 2.5 million shares signals a positive development in the company's financing structure, though the percentage of promoter shares remaining encumbered is still substantial.

Additionally, the company has approved the private placement of Non-Convertible Debentures (NCDs) on November 21, 2025. The total issue size is up to Rs 75 crore, consisting of 7,500 unsecured NCDs, each with a face value of Rs 1,00,000. This includes a base issue of Rs. 25 Crores and a Green Shoe Option to retain oversubscription of up to Rs 50 crore. The debentures have a tenure of 3 years (36 months), maturing with redemption at par on the maturity date, tentatively December 9, 2028. They carry an 8.50 per cent p.a. coupon/interest rate, payable quarterly. The NCDs are proposed to be listed on the BSE Limited and will be secured by a charge on loan receivables, maintained at 1.10 times the aggregate principal outstanding. Default in payment will incur an increased interest rate of coupon plus 2 per cent p.a.

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 16.3 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.