SBI Life acquires 9% stake in Paisalo Digital for Rs 186.20 cr

SBI Life Insurance Company on Thursday said it has acquired nearly 9 per cent stake in non-banking finance company Paisalo Digital for about Rs 186.20 crore through the open market.

SBI Life has acquired a total of38,00,000 equity shares equivalent to 8.99 per cent at Rs489.99 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 Rs 2,204.69 crore as on December 24, 2020.

The company's turnover as of March 31, 2020, was Rs337.45 crore.

The promoters hold46.07 per cent stake in the company, foreign portfolio investors 23.91 per cent, LIC 3.53 per cent and others26.49 per cent.

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 Rs 54 crore and a loan book of Rs1,725 crore.