This SBI-Life Owned Company Approves Rs 40 Cr NCD Allotment; Another Rs 50 Cr Issue Incoming

Following its Operations and Finance Committee meeting on December 9, 2025, Paisalo Digital Limited announced significant fundraising actions. The company approved the allotment of 4,000 secured, rated, listed, redeemable non-convertible debentures (NCDs) with a face value of Rs 1,00,000 each, totalling Rs 40 crore, featuring an 8.50% annual coupon payable quarterly, with a 36-month term and maturity on December 9, 2028.

The Board also approved the private placement on the EBP platform for the issuance of up to 5,000 secured NCDs worth Rs 50 crore, including a Rs 25 crore green shoe option, with a tentative allotment date of December 15, 2025. These NCDs offer 8.45% annual interest, which will be paid quarterly and redeemable at par after two years on December 15, 2027.

A first-ranking exclusive charge on hypothecated loan receivables secures both sets of debentures, providing security cover equal to 1.10 times the outstanding principal, with delays attracting a coupon rate of + 2%.

Paisalo Digital said in a stock exchange filing that the new issue will be listed on BSE, and no special rights or adverse remarks regarding payment history were reported.

In its Q2 FY26 Investor Presentation, Paisalo Digital Limited highlighted its strong operational, financial, and strategic advancements. With its highest-ever quarterly disbursements of Rs 11,025 million and a fast-growing client franchise of ~13 million, including 1.8 million new additions in Q2 alone, the NBFC corporation recorded a record AUM of Rs 54,494 million, representing 20% YoY growth.

With 4,380 touchpoints spread across 22 states, including branches, distribution centres, and business correspondents, Paisalo's pan-Indian reach has grown, greatly improving last-mile credit delivery. With PAT at Rs 515 million, NII at Rs 1,262 million, and asset quality steady at GNPA 0.81% and NNPA 0.65%, profitability remained robust and demonstrated cautious risk management.

Additionally, the corporation demonstrated long-term confidence by improving its capital structure through the partial conversion of FCCBs and continuing rises in the promoter stake to 41.2%. Paisalo continues to grow sustainably while empowering underprivileged and MSME borrowers throughout India with 98.4% collection efficiency, 38.2% capital adequacy, 6.5% NIM, and a diverse, tech-driven business backed by co-lending partnerships and strong ESG activities.

In the September quarter (Q2 FY26), SBI Life Insurance Company Ltd held a 6.83% stake comprising 6,21,14,267 shares in Paisalo Digital, which was a drop from their 8.96% stake in the previous June quarter (Q1 FY26).