₹40 Stock Gains Spotlight After ₹30 Crore CP Repayment
Paisalo Digital repays ₹30 crore CP, boosting market confidence.
Paisalo Digital Ltd, a low-priced non-banking financial company (NBFC) trading below ₹40, caught investors’ attention after it successfully redeemed commercial papers (CPs) worth ₹30 crore upon maturity. This full repayment, completed as scheduled, strengthened the company’s financial credibility and sparked a positive reaction in the stock market.
The commercial papers in question were issued earlier at an interest rate of 11%, with each CP valued at ₹5 lakh. In total, **600 units were privately placed with State Bank of India (SBI), marking a short-term borrowing of ₹30 crore. The company completed the redemption on March 20, 2025, as planned, signaling strong financial discipline.
Soon after the announcement, Paisalo’s shares jumped intraday to ₹36.46, a gain of more than 6% on the BSE. The stock eventually settled close to ₹36, showing renewed interest from retail investors and traders encouraged by the company’s prompt debt servicing.
The successful redemption indicates that Paisalo Digital is in a healthy liquidity position. The company has maintained a net cash-positive balance sheet, with no outstanding debt—a strong indicator of financial strength in a volatile NBFC environment. While its share price has faced pressure over the past year, sliding nearly 50%, the stock has delivered around 300% returns over five years, reflecting long-term potential.
In addition to domestic fundraising through commercial papers, Paisalo has also tapped global capital markets. The company had previously listed Foreign Currency Convertible Bonds (FCCBs) worth \$48 million on the Mauritius International Financial Centre (IFSC), further enhancing its financial flexibility.
Operationally, Paisalo has shown consistent growth. For Q3 FY25, the company posted a net profit of ₹62.4 crore, up over 10% year-on-year, with total revenues touching ₹203.8 crore. Its assets under management (AUM) reached ₹4,622 crore in Q4, reflecting a 32% rise compared to the previous year. Loan disbursements also grew by about 38%, showcasing strong demand for its credit services.
The company’s business model focuses on inclusive financial solutions and micro-lending, particularly targeting underserved markets.
Major institutional investors, including SBI Life Insurance and Life Insurance Corporation of India (LIC), hold stakes in the company—adding to its credibility and signaling confidence from long-term capital providers.
Investor Takeaways
Paisalo Digital’s full repayment of ₹30 crore in commercial papers sends a clear message about its liquidity strength and financial discipline. Timely redemption improves its reputation with institutional investors and debt markets, a critical factor for NBFCs relying on short-term borrowings.
With growing AUM, improving profits, a broad customer base, and solid backing from institutions, Paisalo has the potential to rebound—provided it maintains control over credit risk and continues to access affordable funding.
That said, investors should be mindful of ongoing sectoral volatility. The stock is still trading below key moving averages and has seen sharp corrections in recent months.
Summary
Paisalo Digital Ltd, a stock priced under ₹40, saw renewed market interest after it fully repaid ₹30 crore worth of commercial papers on their maturity date. The move reflects its strong liquidity profile and disciplined financial management, supported by rising profits, expanding AUM, and institutional backing.
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