SBI Life Insurance Company on Thursday said it has acquired nearly 9% stake in non-banking finance company Paisalo Digital for about ₹186.20 crore through the open market.
SBI Life has acquired a total of 38,00,000 equity shares equivalent to 8.99% at Rs 489.99 per share for a cash consideration as an ordinary course of business on the stock exchange on December 24, it said in a regulatory filing.
It is not a related party transaction, the insurer added.
Paisalo Digital has a market capitalisation of ₹2,204.69 crore as on December 24, 2020.
The company’s turnover as of March 31, 2020, was Rs 337.45 crore.
The promoters hold 46.07% stake in the company, foreign portfolio investors 23.91%, LIC 3.53% and others 26.49%.
Incorporated on March 5, 1992, Paisalo Digital provides loans to individuals, SME and MSMEs and to Joint Liability Group (microfinance) through 129 branches across the country.
The company’s profit after tax in FY20 stood at ₹54 crore and a loan book of Rs 1,725 crore.