Paisalo Digital has successfully raised Rs 124.47 crore through a private placement of 12,447 unsecured non-convertible debentures. The debt instruments carry an annual coupon rate of 12%, payable quarterly, with a long-term tenure maturing in September 2036. This move strengthens the company's capital position, though investors should note the unsecured nature of these instruments and the company’s ongoing obligation to service interest through operational cash flows.
Paisalo Digital Secures Rs 124.47 Crore via NCD Issuance
Total capital raised stands at Rs 124.47 crore through 12,447 unsecured NCDs.
The instruments carry a coupon rate of 12% per annum, payable on a quarterly basis.
Reader Takeaway: The issuance boosts long-term liquidity but adds a recurring 12% interest cost on unsecured debt obligations.
What just happened
Paisalo Digital Limited has completed the allotment of 12,447 unsecured, redeemable, taxable non-convertible debentures (NCDs) through a private placement process. The allotment was finalized on September 18, 2026, with each instrument carrying a face value of Rs 1 Lakh.
Why this matters
This debt issuance provides Paisalo Digital with substantial capital to support its ongoing business operations. By choosing the NCD route, the company is tapping into the debt market to fund its requirements, committing to a fixed 12% interest payout to investors until the maturity date in 2036. The quarterly payment frequency underscores the company’s need for consistent cash flow generation to remain compliant with its debt obligations.
Terms and Redemption
The NCDs are set to mature on September 13, 2036, providing the company with a tenure of nearly 10 years. Importantly, the firm holds a call option for potential early redemption as specified in the offer documentation.
Regarding default protection, the terms include a penalty provision: if interest or principal payments are delayed by more than three months, the coupon rate increases by 2.00% per annum. This effectively raises the liability to 14.00% in the event of a payment default.
Risks to watch
As these are unsecured instruments, they are not backed by collateral. Investors are exposed to the company's credit risk, relying entirely on the firm’s financial health and ability to generate sufficient operational cash to meet these high-interest commitments over the next decade.