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Carlyle-backed SBI Life Insurance bumps up stake in Paisalo Digital
Photo Credit: Thinkstock

SBI Life Insurance Co Ltd, India’s largest private-sector life insurer, on Tuesday picked up an additional 2.10% stake in microcredit company Paisalo Digital Ltd to hike its shareholding to 11.08%. 

SBI Life, which counts private equity giant Carlyle as its backer, purchased 8.9 lakh shares on Friday, Paisalo informed stock exchanges. 

The insurer bought the stake for Rs 53 crore going by the volume weighted average price. 

The insurance unit of the nation’s biggest lender State Bank of India didn’t disclose the rationale behind the investment. 

The news comes after SBI Life sold a 5.19% stake in tranches starting March 31. 

Before that, it bought a stake of 8.99% in December.  

Paisalo’s promoters own 37.53% of the company while foreign portfolio investors hold 14.14% stake. 

Shareholders include Nomura, Mauritius-based hedge fund Antara India Evergreen Fund, and UK-based investor's India arm Elara Capital India fund. 

Incorporated in March 1992, Paisalo is a non-banking finance company that offers loans to individuals, small and medium-sized enterprises and joint liability groups.  

Paisalo operates through 129 branches across the country. It reported net sales of Rs 337 crore and a pretax profit of Rs 74 crore for the year ended March.

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