Paisalo Digital Limited has created quite a stir in the financial world with its latest Non-Convertible Debentures (NCDs). This investment opportunity is an ideal choice for investors looking to achieve a balanced combination of stability and growth. Paisalo, a trusted and RBI-registered Non-Deposit Taking Systemically Important Non-Banking Financial Company (NBFC), has garnered significant interest from potential investors, making it a preferred destination for parking their funds.
About Paisalo Digital Limited
Paisalo Digital Limited was incorporated in the year 1992 and is now a leading RBI-registered Non-Banking Financial Company (NBFC) with a primary mission of extending affordable loans to individuals at the base of India’s economic hierarchy. Operating across 18 states and serving over 1.5 million happy customers, Paisalo has significantly established itself in the industry. Additionally, the company is a trailblazer in the co-lending model, forging partnerships with prominent banks such as the State Bank of India, Bank of Baroda, UCO Bank, Punjab National Bank, and Karnataka Bank.
Detailed Issue Structure
| Debenture Issuer | Paisalo Digital Limited (‘Issuer’ or ‘Company’) |
| Debenture Investor/ Debenture Holder | Any or all of the Eligible investors who are holding the debentures |
| Anchor Investor | Launchpad Fintech Pvt Ltd |
| Debenture Trustee | Axis Trustee Services Ltd. |
| Depository | CSDL/NSDL |
| Registrar and Transfer Agent | Alankit Assignments Ltd |
| Rating | IVR AA/Stable |
| Rating Agency | Infomerics Ratings |
| Legal Counsel | Khaitan & Co. |
| Guarantors | Personal Guarantee of Mr. Sunil Agarwal |
| Credit Enhancement | None |
| Other Obligators | None |
| Investment Amount | Secured, Listed, Rated, Redeemable and Non-Convertible Debentures (‘NCDs’) aggregating INR 25 Crore with a green shoe option of INR 25 Crore to be issued in dematerialized form |
| Tenor | 36 months |
| Principal | Bullet Payment at the end of 36 months |
| IRR | 9.95 % p.a.p.q. |
| Coupon | Quarterly |
| Purpose | The proceeds of the investment shall be utilized towards on- lending |
| Financial/Other Covenants | The following financial covenants will be calculated and tested while the facility is outstanding, based on the quarterly limited review financial statements of the Issuer. The first testing of the covenants would be for the quarter ending subsequent to the date of investment. Covenants during the Tenor of Investment: Capital adequacy ratio (as defined in RBI regulations) to be above 25% at all times Cumulative Asset Liability Mismatch should always be positive as per RBI guidelines NPA lower than 5% Total Debt/ TNW not to exceed level 5 times PAR 90 shall mean the outstanding principal amount of all clients that have one or more installments of principal past due for ninety days or more. (Net worth is defined as Share capital + Reserves and Surplus- Accumulated losses – Investment in any group companies – Intangible assets) |
Webinar on Paisalo Digital Limited’s New NCD Issue
BondsIndia is hosting an exclusive and thought-provoking webinar, highlighting Paisalo Digital Limited (PDL) and its impactful journey in the world of investments and financial services. What makes this webinar particularly special is that it will feature expert speakers from Paisalo Digital Limited, including Mr. Santanu Agarwal (Deputy Managing Director), Mr. Harish Singh (Executive Director and CFO), Mr. Anoop Krishna (Executive Director), and Mr. Gauri Shankar (Independent Director).
The webinar is scheduled to begin on October 5th, 2023, at 4:00 PM. The topics they will cover are:
- Introduction to Paisalo Digital Limited
- Unveiling Financial Performance, Terms and Structure
- A Glimpse into the Promising Future Outlook
- Insightful Exploration of NCD Investment Instrument
Product Profile of Paisalo Digital Limited
- Small Income Generation Loans – This product offered by Paisalo Digital Limited is tailored to assist individuals or small enterprises in generating income. These financial packages offer access to funds that can be employed for a wide range of income-generating endeavors. By extending financial aid for income-generating initiatives, these loans aspire to enable individuals and communities, to promote economic development and self-reliance.
- Mobility Loan – This loan is customized to help individuals or small businesses generate income. These financial packages provide access to funds that can be used for a diverse array of income-generating activities. By providing financial support for income-generating projects, these loans aim to empower both individuals and communities, fostering economic growth and self-sufficiency.
- Entrepreneurial Laon – This loan is offered by Paisalo to empower aspiring entrepreneurs and small business proprietors. This specialized loan program has been meticulously structured to provide readily accessible financial solutions. These financial resources are strategically designed to not only fuel the growth and expansion of businesses but also to facilitate their development, enabling them to reach new horizons of success.
Key Financial Highlights of Paisalo Digital Limited
- Highest ever AUM of INR 3,644.4 crore as of Q1 FY 2024.
- Strong capital adequacy of 40.41% in Q1 FY 2024.
- Credit Rating: IVR AA/Stable Outlook, IVR A1+ for Commercial Paper
- ROE at 12.65% and ROA at 4.88% in Q1 FY 2024.
- NPA and NNPA significantly reduced, maintaining a positive long-term outlook.
Conclusion
Paisalo Digital Limited’s fresh NCDs present an exceptional prospect for investors in search of a blend of security and profitability. Backed by a robust financial base and a dedication to promoting financial inclusivity, Paisalo Digital emerges as a trustworthy option for your investment portfolio. Keep an eye on BondsIndia for further insights into this promising investment opportunity.