The total redemption value of the listed commercial papers (CPs) is Rs 30 crore, and the tenure of the CPs is 91 days from the date of allotment.
Shares small-cap Non-Banking Financial Company (NBFC) Paisalo Digital ended the session on a positive note as the company announced the country’s largest PSU bank, State Bank of India (SBI), has invested in the Commercial Papers (CPs) issued by it.
The counter opened in red at 35.13 against the previous close of Rs 35.80 on the BSE. However, it surged after the company shared details about the investment by SBI and touched the high of Rs 36.96 – a gain of 3.24 per cent from the last trading price of the previous session.
According to the information shared with exchanges, the company said that its Operations and Finance Committee of Board of Directors has made an allotment of 600 commercial papers worth over Rs 29 crore to SBI on March 11.
What is commercial paper?
Commercial papers are short-term, unsecured debt instruments issued by companies or financial institutions to raise funds. This is considered to be an alternative to costlier methods of funding.
Banks, including SBI, often invest in them as part of their liquidity management or to earn short-term returns.
Paisalo Digital Commercial Paper Details
Paisalo Digital has issued 600 Commercial Papers of face value of Rs 5 lakh each to SBI on a private placement basis. The issue price of the CPs is Rs 4,86,594.50 each and the total issue value is Rs 29,19,56,700.
The total redemption value of the listed CPs is Rs 30 crore, and the tenure of the CPs is 91 days from the date of allotment. The CPs will carry a yield of 11.05 per cent. The date of allotment is March 11, 2025, while the date of maturity or redemption is June 10, 2025.
As per the shareholding pattern at the end of December 2024 quarter, state-run insurance giant Life Insurance Corporation of India (LIC) holds more than 1 per cent stake in the company.
Meanwhile, Sensex slipped 12.85 points to close at 74,102.32 and Nifty up 37.60 points at 22,497.90.