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.

A.K. Capital Services Limited has announced a significant investment decision, with its Banking and Investment Committee approving a ₹75 crore capital infusion into subsidiary A.K. Capital Finance Limited through subscription of Compulsorily Convertible Preference Shares.

Investment Details and Structure

The investment, approved on March 10, 2026, involves the subscription of 75,00,000 Non-Cumulative Compulsorily Convertible Preference Shares (CCPS) with a face value of ₹100 each. The transaction will be executed through cash consideration and may be completed in one or more tranches.

Subsidiary Financial Performance

A.K. Capital Finance Limited, the target entity, demonstrates strong financial fundamentals across key metrics. The subsidiary operates as a Systemically Important Non Deposit Accepting Middle Layer Non-Banking Financial Company (NBFC-ND-SI) registered with the Reserve Bank of India.

Business Background and Operations

A.K. Capital Finance Limited, incorporated on February 03, 2006, operates under a hybrid business model generating revenue through multiple streams including interest income from loan portfolios, fees income, and treasury income from investment activities. The company is categorized as an Investment and Credit Company (NBFC-ICC) and maintains operations exclusively within India.

The subsidiary's revenue performance over the past three years demonstrates consistent growth:

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

Shareholding Impact and Related Party Considerations

Currently, A.K. Capital Services Limited holds 95.12% of the total paid-up equity share capital and 75% of the paid-up preference share capital of A.K. Capital Finance Limited. Upon conversion of the CCPS into equity shares according to the terms specified, the parent company's holding will adjust to 93.38% of the paid-up equity share capital.

The transaction qualifies as a related party transaction conducted on an arm's length basis, supported by an independent valuation report from a registered valuer. Key stakeholders Mr. A.K. Mittal (Managing Director and Promoter) and Ms. Aditi Mittal (Non-Executive Director and Promoter Group member) have interests corresponding to their shareholding in the subsidiary.

Strategic Objectives

The capital infusion serves multiple strategic purposes for A.K. Capital Finance Limited. The funding will address general business requirements while supporting expansion of business operations and activities. The investment aims to strengthen the subsidiary's liquidity position, enabling enhanced operational capacity and growth initiatives within the NBFC sector.