Paisalo Digital Limited has completed the allotment of 29,49,247 secured, rated, listed, and redeemable non-convertible debentures (NCDs) through a public issuance. The total value of the allotted instruments stands at ₹2,949.25 crore, falling within the company’s shelf limit of ₹90,000 lakh.

The Operations and Finance Committee of the Board approved the allotment in a meeting held on August 19, 2026. The issuance forms part of Tranche I, which had a base issue size of ₹15,000 lakh and an oversubscription option (green shoe) of up to ₹15,000 lakh, aggregating to a maximum potential raise of ₹30,000 lakh.

Allotment Details

The NCDs were allotted across four investor categories. Institutional investors received the largest share by value, followed by high-net-worth individuals and retail investors. A total of 5,650 applications were received, with 256 applications rejected or partially rejected.

Instrument Terms

The issued NCDs are secured by way of an exclusive charge created on the loan receivables of the company. The security cover is maintained at a minimum of 1.10 times the entire secured obligations throughout the tenure of the debentures. The instruments carry a credit rating of AA (Stable) from both BWR and IVI.

The issuance comprises six distinct options with varying tenors and coupon rates:

• Option I: 11,45,527 NCDs at a coupon rate of 9.00%, maturing on February 19, 2028.
• Option II: 4,81,891 NCDs at 9.15%, maturing on August 19, 2028.
• Option III: 2,99,753 NCDs at 9.50%, maturing on August 19, 2029.
• Option IV: 2,46,470 NCDs at 9.92%, maturing on August 19, 2029.
• Option V: 3,62,409 NCDs at 10.00%, maturing on August 19, 2031.
• Option VI: 4,13,197 NCDs at 10.47%, maturing on August 19, 2031.

Interest payments for Options I, II, III, and V are scheduled monthly, while Options IV and VI feature annual interest payments. The first interest payment date for most tranches is September 10, 2026, except for Options IV and VI, where it is August 19, 2027.

What the Numbers Show

The capital structure of this issuance reflects a deliberate segmentation of investor appetite based on yield and tenure preferences. While institutional investors participated with only 10 applications, they accounted for approximately 10.2% of the total allotted quantity. In contrast, retail individual investors represented the largest segment by application volume (4,500 applications), securing nearly 10.1% of the total NCDs allotted. The higher coupon rates associated with the longer-dated Options V and VI (10.00% and 10.47%) attracted significant allocation, suggesting investor demand for fixed-income instruments with extended lock-in periods in the current rate environment.

Paisalo Digital has entered a Memorandum of Understanding (MoU) with LoanKhata for a proposed ₹1,000 crore co-lending partnership. The agreement aims to expand financial access for MSMEs and micro-enterprises by combining Paisalo’s technology-led underwriting with LoanKhata’s extensive last-mile distribution network.

Partnership structure and funding

The co-lending facility envisages a participation structure where Paisalo funds 80% and LoanKhata funds 20% of each eligible loan. The partnership targets micro-enterprises and MSMEs across semi-urban and rural markets.

Distribution expansion

The partnership leverages complementary distribution engines. Paisalo has scaled its network from 1,052 touchpoints in FY23 to 5,995 touchpoints as per Q1 FY27, comprising 424 branches, 3,997 distribution points, and 1,574 business correspondents across 23 states. LoanKhata contributes a network of over 1,00,000 retailers with CSP registration and access to a customer base exceeding 90 million.

Santanu Agarwal, Deputy Managing Director of Paisalo Digital Limited, stated that the partnership creates a scalable operating model to serve a larger base of eligible borrowers while maintaining disciplined underwriting and pristine asset quality.

Strategic rationale

The company views this move as part of its acceleration phase to scale its loan book and strengthen its technology-led lending model. Key strategic objectives include:

• Growth ambition: Supporting the three-year roadmap to double AUM, total income, and PAT.
• Last-mile reach: Combining Paisalo’s 5,995 touchpoints with LoanKhata’s retailer network.
• Asset-light scale: Enabling deeper borrower access through existing infrastructure.
• Risk management: Preserving credit discipline through disciplined underwriting and portfolio monitoring.