Paisalo Digital Ltd has announced a significant upcoming event that could potentially impact its financial strategy. The company has scheduled a board meeting for December 9 to review its fundraising plan through non-convertible debentures (NCDs).

Key Points of the Review

• Date of Review: December 9
• Focus: Fundraising plan through non-convertible debentures
• Potential Outcomes:
  • Determination of debt fundraising strategy
  • Possible changes to the company's capital structure

Implications for Investors

This review is a crucial step for Paisalo Digital as it could lead to important decisions regarding the company's financial future. Non-convertible debentures are a form of debt instrument that companies use to raise capital, offering fixed interest payments to investors without the option to convert into equity shares.

The outcome of this review may provide insights into:

1. Paisalo Digital's current financial needs
2. The company's approach to managing its debt profile
3. Potential changes in the company's capital structure

Investors and market watchers will be keenly observing the results of this board meeting, as it could signal Paisalo Digital's financial direction and strategy for the near future.

About Non-Convertible Debentures (NCDs)

For those unfamiliar with NCDs, here's a quick overview:

It's important to note that the upcoming review is a preliminary step, and any decisions made will be subject to necessary approvals and market conditions.

Investors are advised to stay tuned for further announcements from Paisalo Digital following the December 9 board meeting for more detailed information on the company's fundraising plans and potential impacts on its financial structure.

Paisalo Digital Limited , a prominent player in the financial services sector, has taken a significant step to bolster its capital structure. The company's Operations and Finance Committee has given the green light for the issuance of unsecured non-convertible debentures (NCDs) worth Rs 75 crores.

Key Details of the NCD Issuance

Security and Structure

Despite being categorized as unsecured, the NCDs will be backed by a charge on the company's loan receivables. Paisalo Digital has committed to maintaining the value of this security at 1.10 times the outstanding principal amount of the NCDs at all times, providing an additional layer of assurance to potential investors.

Issue Composition

The NCD issuance is structured with a base issue of Rs 25.00 crores and includes a green shoe option of up to Rs 50.00 crores, allowing for oversubscription. This flexible structure enables Paisalo Digital to potentially raise the full Rs 75.00 crores if investor interest is strong.

Listing and Compliance

In line with regulatory requirements, Paisalo Digital intends to list these NCDs on the BSE Limited, enhancing their liquidity and tradability in the secondary market.

Investor Considerations

For potential investors, it's worth noting that while the NCDs offer a coupon rate of 8.50% per annum, they come with a provision for a 2% increase in the interest rate in case of any delay in payment of interest or principal.

This move by Paisalo Digital to raise funds through NCDs suggests a strategic approach to capital management. As always, investors are advised to conduct their own due diligence and consider their risk appetite before making investment decisions.