On Wednesday, Paisalo Digital Limited’s shares increased by 5.46%, reaching Rs 31.89 per share intraday after the previous day’s close of Rs 30.24. The stock has recovered almost 5% from its 52-week low of Rs 29.38; however, it still trails greatly behind the 52-week high of Rs 82.
The increase in share price comes as a result of the company’s recent announcement regarding fund mobilization via commercial paper issuance. The Operations and Finance Committee of Paisalo Digital has sanctioned the issuance of Commercial Papers (CPs) up to Rs 480 crore through private placements.
In this regard, the company has issued 600 listed CPs each worth Rs 5,00,000 totalling Rs 30 crore to State Bank of India (SBI). These CPs have been issued with a yield of 11 per cent on an issue price of Rs 4,86,653.50 per note, which totals to an aggregate value of Rs 29.19 crore. These CPs have a maturity date of 91 days from issuance, specifically September 23, 2025. IDBI Bank Ltd acts as the paying and issuing agent for these transactions.
The issuance of commercial papers to SBI is an example of investor confidence in the company’s working capital needs. It also helps Paisalo bolster financing from the right financial institutions, which is critical for NBFCs that operate in the lending market.
Through these years, Paisalo Digital has established itself well, obtaining Non-Banking Financial Company (NBFC) recognition from the RBI, having been a major contributor to economic growth.
Guided by strong corporate fundamentals highlighted by Rs 182.08 crore net sales and Rs 46.29 crore net profit with a year-on-year gain of 26.4% for Q4 FY25 and bolstered by high demand for credit, it shows a growing operational efficiency-driven environment will enable sustained value creation, continuing to fuel optimism surrounding industry prospects.
The business is seeing higher levels of interest from institutional investors. In March 2025, Foreign Institutional Investors (FIIs) bought 88,51,218 shares, raising their holding to 10.38%, an increase from December 2024 numbers. Recently, SBI Life Insurance Co Ltd owns a 9.36% stake and LIC holds just over 1%, bolstering the narrative around the company’s valuation.
Paisalo Digital is well-known in rural and semi-urban areas of India for promoting income-generating opportunities through loans and credit services. The company has over 65 lakh customers and operates more than 3,275 customer touchpoints across 22 states. They use a business correspondent model along with partnerships with leading banks like SBI and Bank of India. Paisalo is actively supporting the banking and microfinancing ecosystem in the country by banking on the transaction volume, which exceeds Rs 3,400 crore in just two years of servicing over 59 lakh customers.
The firm is looking forward to increasing its presence while bolstering its financing capabilities to foster financial inclusion across all borders, thereby energising India’s rural economy.