Shares of Life Insurance Corporation of India (LIC)-owned non-banking finance company (NBFC), Paisalo Digital, jumped over 6% in intraday deals on Wednesday, October 15, extending gains to the second straight day following the allotment of commercial papers (CPs).
The company, in an exchange filing yesterday, announced the allotment of 700 commercial papers of the face value of ₹5 lakh each. The issue price of the commercial papers was ₹4,81,822.50, with the company raising ₹33.72 crore via the sale of commercial papers.
On redemption of the commercial papers, the company will pay ₹35 crore.
The said commercial papers were allotted on October 14 and will be up for redemption on March 25 next year, making the tenure of the CPs 162 days from allotment. These CPs carry a yield of 8.50%.
The small-cap NBFC stock is part of LIC’s stock portfolio. LIC owns 77,59,511 shares or a 1.12% stake in the company as of the June quarter shareholding pattern details.
Meanwhile, SBI Life Insurance Company, another PSU, owns 6,21,14,267 shares, representing an 8.96% stake.
Paisalo Digital Share Price
Small-cap stock below ₹50, Paisalo Digital, witnessed an over 6% increase to ₹40.29 on the BSE. With today’s rise, the NBFC stock has extended its monthly gains to 5% after rising 26% in September.
However, despite the strong trend visible over the last two months, Paisalo Digital stock has seen a 24.66% in its value over a year and 19% on a year-to-date (YTD) basis.
The rebound in the LIC-owned stock is visible over the last six months as the scrip gained 22% during the period and rallied 30% in three months.
As of 1.35 pm, Paisalo Digital share price traded 5.17% higher at ₹39.88.
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