Paisalo Digital , a non-banking financial company (NBFC), has seen its promoter company increase its stake while reporting robust financial results for the first quarter.

Promoter Stake Increase

Equilibrated Venture Cflow (P) Ltd, the promoter company of Paisalo Digital, has acquired 45 lakh shares, raising its stake by 0.5% to 18.17%. This move demonstrates the promoter's confidence in the company's future prospects.

Q1 Financial Highlights

For the quarter ended June 30, Paisalo Digital reported:

• Consolidated net profit of Rs 47.00 crore, up 13.7% from Rs 41.00 crore year-over-year
• Total revenue increased by 17% to Rs 219.00 crore from Rs 187.00 crore
• Assets under management stood at Rs 5,203.00 crore
• Net worth reached Rs 1,575.00 crore
• Net Non-Performing Assets (NPA) at 0.68%
• Debt-to-equity ratio at 2.15

Financial Position

The company's balance sheet as of March shows:

The significant increase in total assets and the reduction in current liabilities indicate a strengthening financial position for Paisalo Digital.

Market Performance and Institutional Holding

Despite the positive financial results and increased promoter confidence:

• The stock has declined 37% over the past year
• Life Insurance Corporation of India (LIC) holds a 1.12% stake in the company

The contrast between the company's financial performance and its stock market performance suggests that investors may be factoring in broader market conditions or sector-specific challenges affecting NBFCs.

Paisalo Digital's strong financial results, coupled with the promoter's increased stake, may signal confidence in the company's business model and growth prospects. However, the stock's performance over the past year indicates that market sentiment remains cautious. Investors and analysts will likely keep a close eye on the company's future performance and any developments in the NBFC sector that could impact its growth trajectory.

Paisalo Digital , a company listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), has seen a significant change in its shareholding structure. Equilibrated Venture Cflow (P) Ltd, a member of the promoter group, has increased its stake in the company through a substantial share acquisition.

Key Highlights of the Acquisition

• Equilibrated Venture Cflow acquired 45,00,000 equity shares of Paisalo Digital.
• The acquisition took place through open market purchase.
• This move increased Equilibrated Venture Cflow's shareholding from 17.67% to 18.17% of Paisalo Digital's total voting capital.

Details of the Transaction

According to the disclosure filed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the following details were revealed:

The acquired shares have a face value of Re. 1 each. Paisalo Digital's total equity share capital remains unchanged at Rs. 90,21,18,289, divided into 90,21,18,289 equity shares.

Impact and Implications

This acquisition strengthens the position of the promoter group in Paisalo Digital. As Equilibrated Venture Cflow belongs to the promoter group, this increase in shareholding could potentially influence the company's strategic decisions and direction.

Additional Company Update

In a separate announcement, Paisalo Digital informed that it has fully redeemed and repaid a Commercial Paper with the following details:

• Scrip Code: 729651
• ISIN: INE420C14185
• Maturity Amount: Rs. 30,00,00,000
• Listed on: BSE Ltd.

This redemption demonstrates the company's commitment to meeting its financial obligations on time.

Investors and market watchers will likely keep a close eye on Paisalo Digital to see how this increased promoter stake and the company's financial management may impact its future performance and strategic decisions.