Shares of Paisalo Digital soared 20 per cent to Rs 624.70 on the National Inventory Exchange (NSE) in intraday commerce on Monday, after SBI Life Insurance Company acquired 9 per cent stake in the finance company via open market. Up to now two trading days, the inventory has moved up 26 per cent.
On Thursday, December 24, 2020, SBI Life Insurance Company had purchased 3.8 million fairness shares, representing 8.99 per cent fairness of Paisalo Digital, for Rs 186 crore via bulk deal on the NSE at Rs 490 per share, exchange data show.
Antara India Evergreen Fund (1.5 million fairness shares), Elara India Opportunities Fund (1.1 million), Heshika Growth Fund (0.29 million) and Davos International Fund (0.08 million) have collectively sold 36.9 million shares of Paisalo Digital. The name of other sellers were, alternatively, not ascertained immediately.
Incorporated in 1992, Paisalo Digital is registered with the Reserve Bank of India (RBI) as a non-deposit taking non-banking finance company (NBFC). Sunil Agarwal, the founder promoter of the company, continues to be the managing director since inception. The company primarily extends trade loans to SME/corporates and income generation loans to individuals.
Paisalo Digital has entered in to an arrangement with a prominent PSU bank, wherein it would originate loans under its income generation loans extended to both individuals and under its group lending schemes, of which 80% would be funded by the PSU bank and the balance would be funded by Paisalo Digital. The company would manage the loan including collections and would earn a fee on the off-book AUM. This arrangement would allow Paisalo Digital to mitigate the risks associated with the unsecured lending portfolio.
At 10:46 am; the inventory was once trading 17 per cent higher at Rs 607 on the NSE, as in comparison to 0.52 per cent rise in the Nifty50 index. A combined 223,000 fairness shares changed hands on the counter on the NSE and BSE.