Smallcap under ₹50: LIC-backed Paisalo Digital gains on ₹2,700-crore fundraising plan | Stock Market News

Shares of Paisalo Digital, a smallcap non-banking financial company (NBFC) backed by LIC and SBI Life Insurance, surged in trade on Tuesday, April 8, after the company unveiled ambitious fundraising plans and a series of board-level changes. The move, seen as a strategic push to strengthen its capital base and governance, brought fresh focus to the underperforming stock, which has been reeling under selling pressure for several months.

Fundraising Plan of Up to ₹2,700 Crore Gets Nod

Paisalo Digital’s Board of Directors gave in-principle approval to raise up to ₹2,700 crore through a combination of equity shares, foreign currency convertible bonds (FCCBs), and other eligible securities. The funds will be raised in one or more tranches through instruments such as preferential allotments, private placements, and qualified institutional placements (QIP). The fundraising will be subject to shareholder and regulatory approvals.

The fresh capital is expected to help the NBFC support its lending operations, expand reach, and strengthen its balance sheet at a time when competition in the financial services sector continues to intensify.

Board Reshuffle and EGM Schedule Announced

As part of its governance overhaul, the company announced the appointment of Mr. Vinod Kumar as Director and proposed his elevation as Executive Director, subject to shareholder nod.

The board also recommended the re-appointment of Mrs. Nisha Jolly as a Non-Executive Independent Director for a second term of five years. In addition, Mr. Jitendra Kumar Ojha has been proposed for appointment as another Non-Executive Independent Director.

To formalize these developments, the board approved the convening of the 1st Extraordinary General Meeting (EGM) for the financial year 2025–26 on Friday, May 2, 2025. The record date for shareholder eligibility has been set for April 25, 2025. Remote e-voting via NSDL will be open from Tuesday, April 29, 2025, to Thursday, May 1, 2025.

LIC, SBI Life Hold Strategic Stakes

As per BSE data for the quarter ended December 2024, Life Insurance Corporation (LIC) holds a 1.35 percent stake in Paisalo Digital, while SBI Life Insurance owns a significantly higher 9.87 percent. The involvement of marquee institutional investors adds a layer of credibility and long-term support for the company’s strategic plans.

Stock Performance: Still Under Pressure

Paisalo Digital’s stock climbed 4.5 percent intraday to hit ₹31.88, rebounding slightly from its 52-week low of ₹29.75 touched in the previous session. However, it continues to trade more than 63 percent below its 52-week high of ₹86.82 hit in April last year.

The smallcap stock has lost over 58 percent in the last one year, reflecting weak sentiment and prolonged underperformance. In April alone, it is down nearly 10 percent, marking the fifth consecutive month of decline. The stock fell 8 percent in March, 14 percent in February, 13 percent in January, and 2.4 percent in December.

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