Share price of this small-cap stock fell by nearly 35.73% to Rs. 123.4 in the last five trading days, from Rs. 192 on March 7th. The stock had hit a new 52-week high on 1st March at Rs. 199.25 and has been falling since March 6th.
With a market capitalisation of Rs. 5,044.7 crores, the share price of Paisalo Digital Limited closed in the red on Wednesday at Rs. 112.2, down by 19.97 percent.
In the last one year, the company has delivered about 119.5 percent of multibagger returns and nearly 95.8 percent of returns in the last six months. So far in 2024, it has given around 32.8 percent of positive returns.
On Monday, the Delhi High Court issued a notice to the Reserve Bank of India (RBI) and market regulator SEBI over a petition investigating suspected ‘unfair lending’ by Paisalo Digital.
According to the ET, a petition has been filed by Mukesh Arya alleging against Paisalo Digital, where the NBFC is accused of charging an interest rate of 125 percent per annum on loans.
Back in 2018, the petitioner approached Paisalo for a term loan facility from Punjab National Bank for ~Rs. 12 crore, which was to be repaid in 60 months at a flat rate of interest of 17% per annum.
While a letter from Paisalo in May 2019 stated that the outstanding amount was Rs. 15.93 crore, the NBFC after taking symbolic possession of the secured assets reported an outstanding amount of Rs. 23.03 crore.
Arya has also brought the HC’s notice to another letter from April 2022, in which the company demanded Rs. 42.27 crore without providing any breakdown.
Another ongoing issue involves the Sat Priya Mehamia Memorial Educational Trust in Rohtak.
According to the March 12th stock exchanges filings, NBFC said in clarification, that a defaulter named Sat Priya Mehamia Memorial Educational Trust involving a borrowed amount of Rs. 12 crore on March 24, 2018, of which only Rs. 25 lakh of payment has been made.
The defaulter and its office bearers are involved in the sale of the land mortgaged to the company, which was recognised as a loss asset in its books of accounts in September 2019 by providing 100%.
Paisalo Digital has taken several legal actions against the borrower and its office bearers, including filing an FIR.
The defaulter breached the Hon’ble High Court of Delhi’s order of January 25, 2024, to maintain the status –quo regarding the title and possession of the mortgaged properties.
However, despite court rulings, the defaulting entity has continued its process of illegally disposing of the mortgaged properties.
The stock exchanges, BSE and NSE, have placed Paisalo Digital under the long-term ASM (Additional Surveillance Measure) framework, and the company has been given around four weeks to respond to the allegations.
However, Paisalo claims in the filings of March 12th that the Hon’ble High Court in New Delhi has not issued an order instructing any regulator to probe any unfair lending practices.
As of March 13th filings on the stock exchanges, the company’s Board meeting is scheduled to be held on March 21, 2024, to consider and approve the allotment of Bonus Equity Shares in the 1:1 ratio.
This means that, one new Bonus Equity Share of Re. 1 each for every one existing Equity Share of Re. 1 each held by the shareholders of the Company as of the Record Date i.e. March 20, 2024.
As soon as the filings surfaced on the stock exchanges, the share price of Paisalo Digital moved up by nearly 10% and is trading in the green to Rs. 123.40 on March 14th.
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