Lesser known RBI NBFC Paisalo Digital set to come on top among the market analysts with the IPO. Currently trading at Rs. 32.52, it went up intraday by 5% to Rs. 34.14. Analysts now see this share hitting Rs. 74 within a year, which means there are returns to the tune of 128% in an upside rally. This upbeat rally has many eyes on the stock for all the good reasons.
₹2,700 Crore Fund Raising Mani
The buzz is for a reason. Paisalo Digital has emerged with money-raising plans of a staggering Rs. 2,700 crore through equity shares of the company, bonds in foreign currency, and securities of other kinds. This money should in turn, go toward expansion to improve the lending side of the company and increase its market presence. Almost immediately after the press statement got out, investor interest rose.
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Silent Backing Speak Volumes by LIC and SBI Life
Backing from India’s biggest financial giants puts an extra leg to the credibility. Life Insurance Corporation carries a 1.17% stake constituting 77 lakh shares; SBI Life Insurance carries a higher 9.30% stake of 6.21 crore shares. Instititional ownership at a hard-core graduation usually means strong belief in company fundamentals and long-term potential.
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Strong fundamentals, attractive valuation below ₹50
In spite of a 31% drop this year, over the past one month the stock has registered more than 11% upside. The company still dwells in the small-cap space with a market capital of ₹3,052 crore but with aspirations of entering the mid-cap zone. For those wishing to grab breakout opportunities at below ₹50, it still remains an attractive valuation.
Analysts tag it a ‘strong buy’—Is it the next multibagger?
With a price target of ₹74 and increasing institutional interest, Paisalo Digital is now considered as ‘strong buy’ by a number of market analysts. It’s solid financial strategy, aggressive expansion plan and leading multicasting can turn it into a multibagger by 2025.
For retail investors wanting to cash on high-potential small-caps, this could very well be the hidden gem of the year. Do not miss out on the Paisalo momentum before the take-off.
