Shares of Paisalo Digital Ltd. declined over 2% today after the company announced the withdrawal and cancellation of its proposed preferential issue of 3.37 crore convertible equity warrants to certain non-promoter entities.
Paisalo Digital attributed the decision to increased market volatility and a steep decline in its stock price, making it difficult for investors to justify participating in the new issuance. The company’s stock has dropped 10% in the past month and has fallen 60% from its all-time high of ₹99.6, recorded on March 1, 2024.
The preferential issue had been approved by shareholders on January 22, 2025, and had received in-principle approvals from NSE and BSE on February 14. However, in light of the recent downturn in share prices, Paisalo decided to retract the proposal.
“The current market conditions are marked by increased volatility, as the stock market has faced significant fluctuations that have negatively impacted investor sentiment. This volatility, further compounded by declining share prices, which have consistently decreased, making it difficult for potential investors to justify engaging in new issuances,” the company said in a statement.
Paisalo Digital, a non-banking financial company (NBFC) specializing in personal and business loans, will now explore alternative funding options to support its growth strategy. Investors will be watching closely for further updates on its financial plans.
