Why Paisalo Digital's 6% share jump is newsworthy
Paisalo Digital, an NBFC in which LIC holds a 1.12% stake, saw its shares jump over 6% on Wednesday after it raised ₹33.72 crore by issuing 700 short-term commercial papers at an 8.5% yield.
The stock hit ₹40.29 on BSE, adding to its recent gains—even though it's still down nearly 25% over the past year.
Paisalo's move shows it's actively managing its cash
Paisalo's move shows it's actively managing its cash and staying flexible with funding.
LIC holds a small stake (1.12%) and SBI Life Insurance owns nearly 9%, so some big names hold significant stakes.
Despite a rough year, the company's recent capital-raising has coincided with a 30% rally in three months and renewed market interest.
Fresh capital gives the company more stability
By using all funds as per regulations and staying transparent, Paisalo is showing discipline.
Even with sector ups and downs, this fresh capital potentially gives the company more stability—and on Wednesday afternoon, shares were still up over 5%.