Paisalo Digital surges 17.85% post acquisition of 9% stake by SBI Life

Paisalo Digital share price surged 17.85% as of 11:30 am post the acquisition of 8.98% stake by SBI Life Insurance.

SBI Life Insurance Company on Thursday announced that it had bought 38,00,000 shares (8.98% of equity) for Rs 186.20 crore of a non-banking finance company Paisalo Digital at an average price of Rs 490 per share.

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In the same time, Antara India Evergreen Fund (sold 3.54%), Davos International Fund (sold 0.68%), Elara India Opportunities Fund (sold 2.6%) and Heshika Growth Fund (sold 1.89%) pared their stake in the company at an average price of Rs 490.

Paisalo Digital is a non-banking finance company NBFC incorporated on March 5, 1992. It provides loans to individuals, micro, small and medium enterprises, and to Joint Liability Group (MFI). It has 129 branches across the country.

Paisalo Digital has a market capitalisation of 2,204.69 crore as on December 24, 2020. The company’s turnover as of March 31, 2020, was Rs 337.45 crore.

On a consolidated basis, the company’s net profit gained 9.5% to Rs 21.95 crore on a 13.9% fall in net sales to Rs 79.85 crore in Q2 September 2020 over Q2 September 2019.