Smallcap NBFC stock rises as company approves allotment of NCDs

Shares of Paisalo Digital Ltd, a smallcap non-banking financial company (NBFC), traded higher on Tuesday, December 9, 2025, after the company announced the approval of new non-convertible debentures (NCDs). The stock gained over 4 per cent during the day despite starting in the red due to a broader market selloff.

The stock opened at Rs 36.10 on the Bombay Stock Exchange (BSE), slightly lower than the previous close of Rs 36.23. During early trading, the price dropped further to an intraday low of Rs 35.34. However, it later recovered and reached an intraday high of Rs 37.73, representing a gain of 4.14 per cent from the previous day. By the end of trading, the stock was last seen at Rs 37.50, up 3.51 per cent. The company’s market capitalization stood at Rs 3,404.34 crore.

From a technical standpoint, Paisalo Digital’s shares were trading above the 20-day, 50-day, 100-day, and 200-day moving averages, which indicates a strong medium- and long-term trend. However, the stock remained below the 5-day moving average, suggesting a short-term resistance.

The rise in the stock price came after the company shared key updates regarding its financial instruments with the stock exchanges. Investors reacted positively to the news of the new NCD allotments, which contributed to the stock moving into the green during the session.

Details of NCD allotment and stock impact

In its exchange filing, Paisalo Digital stated that the operations and finance committee of the board approved the allotment of debentures worth Rs 40 crore. The committee cleared the issuance of 4,000 secured, rated, listed, redeemable, non-convertible debentures. Each NCD is priced at Rs 1,00,000, resulting in a total value of Rs 40 crore. These debentures will be issued through private placement.

Additionally, the committee approved the issuance of up to 5,000 such NCDs, with a total value of up to Rs 50 crore, including a green shoe option of Rs 25 crore. A green shoe option allows the company to issue additional debentures in case of strong demand from investors. The NCDs being issued are fully paid, rated, listed, senior, secured, redeemable, taxable, and transferable. These measures are expected to strengthen the company’s financial position and provide funds for further growth.

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The announcement of NCD allotment is considered positive for the stock, as it shows that the company is actively raising capital for its operations and expansion plans. Investors often view NCD issuance as a sign of financial health, especially when the debentures are secured and rated, which provides additional confidence.

On the day of the stock movement, broader markets in India were facing pressure. The equity benchmark indices, Sensex and Nifty, fell sharply in early trade due to weak global cues, continuous foreign fund outflows, and selling pressure in sectors like IT and major companies such as Reliance Industries. Despite the overall market downturn, Paisalo Digital’s stock managed to trade higher, reflecting investor confidence in the company’s announcements.

Investors and market analysts closely watch smallcap NBFCs like Paisalo Digital because their stocks can be volatile but provide good opportunities when the company shows signs of strong financial planning. The approval and issuance of NCDs not only provide funds for growth but also attract investors looking for fixed-income instruments with potentially higher returns compared to bank deposits.

The move to issue NCDs aligns with Paisalo Digital’s strategy to strengthen its balance sheet while funding business expansion. The company’s decision to issue secured, rated, and listed debentures indicates a transparent and well-regulated approach, which can help in building investor trust.

In summary, the stock performance of Paisalo Digital on December 9, 2025, reflects both the company’s proactive financial planning and positive investor sentiment. The approved allotment of NCDs, along with the potential green shoe option, signals growth potential and financial stability. Despite weak market conditions on that day, the stock’s recovery and gains underline the strong response from investors.

For smallcap investors, such announcements are important as they indicate that the company is actively managing its resources, raising capital responsibly, and taking steps to ensure long-term growth. Market participants will continue to monitor the stock in the coming days for price movement following the NCD issuance and overall market trends.