NBFC Stock Surges 5% Following Upgrade in Credit Rating, Boosts Proposed NCDs

Paisalo Digital Share Price Rebounds on Strong Buying Momentum

Paisalo Digital (PBZ), a small-cap NBFC stock, saw a sharp rebound from its day's low level on Tuesday, driven by strong buying momentum. The stock opened lower at ₹34.78 per share, compared to its previous close of ₹35.27 per share on the BSE on March 17. However, it rallied as much as 5.06% from its intraday low of ₹33.55 to hit a high of ₹35.25 per share on the BSE.

Rating Upgrade

Paisalo Digital has obtained an additional external credit rating from Brickwork Ratings India Private Limited for its proposed Non-Convertible Debentures (NCDs). The rating agency has assigned a long-term rating of BWR AA / Stable for the company's proposed ₹1,500 crore NCD issuance, supplementing the company's existing rating from Infomerics Analytics and Research Private Limited.

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Rating Rationale

The assigned rating factors in several structural strengths of Paisalo's business model and financial profile, including an established franchise and scalable lending model, strong capitalization, and experienced management. The rating also takes into account steady loan book growth and asset quality.

Impact on Share Price

At 1:15 PM, Paisalo Digital share price was trading 2.35% lower at ₹34.44 per share on the BSE. The stock has gained over 2% in one month and has fallen over 4% in three months. However, it has delivered multibagger returns of 290% over the past ten years.

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Key Statistics

• Open Price: ₹34.78 per share
• Previous Close: ₹35.27 per share
• Intraday Low: ₹33.55 per share
• Intraday High: ₹35.25 per share
• Rating: BWR AA / Stable
• Proposed NCD Issuance: ₹1,500 crore