Akme Fintrade has approved the issuance of ₹600 million in Non-Convertible Debentures via private placement. The funds will support business growth and financial flexibility. The NCDs will be listed, rated, and secured, with monthly interest payments. This move strengthens Akme’s capital base and appeals to institutional debt investors.
Akme Fintrade (India) Ltd has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹600 million on a private placement basis. This strategic move is aimed at bolstering the company’s capital structure and supporting its growth plans in the consumer lending and financial services space.
Key Highlights:
Board Approval Secured: Akme Fintrade’s Board of Directors has formally approved the issuance of listed, rated, senior, secured, transferable, and redeemable NCDs.
Issue Size: The total value of the proposed NCDs is ₹600 million (₹60 crore), to be raised in one or more tranches depending on market conditions and investor appetite.
Issuance Method: The NCDs will be offered on a private placement basis to eligible investors, in compliance with SEBI’s regulatory framework.
Coupon Structure: The debentures are expected to carry a competitive interest rate, with monthly coupon payments and principal repayment in four equal installments.
Purpose of Funds: While the specific use of proceeds has not been disclosed, the funds are likely to be deployed toward business expansion, working capital needs, and refinancing existing liabilities.
Market Impact: The move reflects Akme Fintrade’s proactive approach to capital management and its commitment to maintaining financial flexibility amid evolving market dynamics.
Investor Sentiment: The announcement is expected to attract interest from institutional investors seeking stable returns through secured debt instruments.
This NCD issuance aligns with Akme Fintrade’s broader strategy to diversify its funding sources and support its lending operations. With a stable credit rating and a growing footprint in consumer finance, the company is well-positioned to leverage debt markets for long-term growth.
Sources: ScanX News, MarketScreener