AK Capital Services Limited has announced a significant investment in its subsidiary company through the subscription of preference shares, strengthening its financial services portfolio and supporting business expansion initiatives.

Investment Approval and Structure

The Banking and Investment Committee of the Board of Directors approved an investment of ₹25 crores in A. K. Capital Finance Limited (AKCFL) on March 27, 2026. The investment will be made through subscription of Non-Cumulative Compulsorily Convertible Preference Shares (CCPS).

Subsidiary Company Profile

A. K. Capital Finance Limited operates as a registered Non-Banking Financial Company with the Reserve Bank of India. The subsidiary is classified as a Systemically Important Non Deposit Accepting Middle Layer NBFC (NBFC-ND-SI) and categorized as Investment and Credit Company (NBFC-ICC).

Financial Performance Overview

Historical Revenue Performance

ACKFL has demonstrated consistent revenue growth over the past three years:

• FY 2024-25: ₹333.83 crore
• FY 2023-24: ₹310.09 crore
• FY 2022-23: ₹249.89 crore

Shareholding Structure and Impact

Following the CCPS subscription, AK Capital Services will hold 95.12% of the total paid-up equity share capital and 70.18% of the paid-up preference share capital of AKCFL. Upon conversion of the CCPS into equity shares according to the terms, the company's total holding will be 92.17% of the paid-up equity share capital.

Business Rationale and Objectives

The capital infusion aims to meet AKCFL's general business requirements and support expansion of business operations. The investment will strengthen the subsidiary's liquidity position and facilitate growth in its investment and lending activities. AKCFL operates under a hybrid business model generating revenue through interest income from loan book, fees income, and treasury income from investment activities.

Regulatory Compliance

The transaction has been structured as a related party transaction conducted on an arm's length basis, supported by an independent valuation report from a registered valuer. The company has fulfilled disclosure requirements under Regulation 30 of SEBI LODR Regulations and completed fund transfer on March 27, 2026, with CCPS allotment credited to the company's demat account within prescribed timelines.

A. K. Capital Services Limited has successfully completed the allotment of Commercial Papers worth ₹5 crores following approval from its Banking and Investment Committee. The company announced the completion of this debt instrument issuance through regulatory filings dated March 25, 2026, under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Commercial Paper Allotment Details

The Banking and Investment Committee approved the allotment of 100 units of Commercial Papers at its meeting held on March 25, 2026. The instruments carry attractive pricing parameters for institutional investors.

Market Infrastructure and Compliance

The Commercial Papers are listed on BSE Limited and carry a CARE A1+ credit rating, indicating strong creditworthiness. The Federal Bank Limited serves as the Issuing and Paying Agent (IPA) for the instrument. The total redemption value amounts to ₹5,00,00,000, providing investors with a clear maturity structure.

Regulatory Framework

The allotment operates under comprehensive regulatory oversight ensuring compliance with applicable laws, rules, directions, notifications, and circulars issued by the Reserve Bank of India, SEBI, and other relevant regulatory authorities. Company Secretary and Compliance Officer Chaitali Desai communicated the development to BSE Limited's Listing Compliance Department through digitally signed documentation.

Corporate Structure

A. K. Capital Services Limited operates under CIN and trades on BSE under code 530499. The company maintains its registered office at Mumbai and continues to leverage money market instruments for funding requirements while providing institutional investors with rated short-term investment opportunities.