Akme Fintrade (India) Limited's Board of Directors held a meeting on January 19, 2026, at the company's registered office to deliberate on significant corporate matters. The meeting, which commenced at 11:00 hours and concluded at 11:20 hours IST, resulted in key approvals that strengthen the company's financial position and governance framework.

NCD Allotment Details

The board approved the allotment of 30,000 secured Non-Convertible Debentures on a private placement basis. These financial instruments represent a substantial fundraising initiative for the company.

Tenure and Maturity Structure

The NCDs carry a tenure of 36 months from the deemed date of allotment. The structured timeline provides clarity for investors regarding their investment horizon.

Security and Risk Management

The debentures are secured instruments with comprehensive risk mitigation measures. The company will maintain a minimum security cover of 1.10 times at all times during the tenure over loan receivables, both present and future, that fulfill specified eligibility criteria. This security structure provides additional protection for debenture holders.

In case of payment defaults or events of default, the company has committed to pay additional interest of 2.00% per annum above the applicable interest rate on the outstanding principal amount. Similar penalty provisions apply for breaches of covenants, delays in security creation, and delays in executing the Debenture Trust Deed.

Corporate Governance Initiatives

The board approved the draft notice of postal ballot incorporating proposed resolutions along with explanatory statements. This initiative demonstrates the company's commitment to shareholder engagement and transparent decision-making processes. M/s. Ronak Jhuthawat & Co., Practicing Company Secretaries, have been appointed as scrutinizer for the postal ballot, ensuring independent oversight of the voting process.

Instrument Characteristics

The NCDs are characterized as listed, rated, senior, secured, transferable, and redeemable instruments issued to eligible investors on a private placement basis. The debentures will be redeemed in accordance with the Debenture Trust Deed executed between the issuer and the Debenture Trustee, providing structured redemption procedures for investors.

Akme Fintrade (India) Limited has received reaffirmation of its IVR BBB+ credit rating with stable outlook from Infomerics Ratings for its comprehensive portfolio of banking facilities and debt instruments. The rating covers facilities totaling ₹450.00 crores, reflecting the non-banking financial company's strong operational performance and financial stability.

Rating Portfolio and Facility Details

The rating reaffirmation encompasses multiple facility types across the company's financing operations:

The rating reflects significant enhancements in term loan facilities from ₹49.87 crores to ₹93.80 crores and proposed facilities increasing from ₹56.13 crores to ₹105.00 crores, demonstrating the company's expanding operational capacity.

Strong Financial Performance Drives Rating

Akme Fintrade's financial performance in FY25 showcased robust growth across key metrics. Net interest income increased by approximately 52% year-on-year to ₹62.85 crores, supported by growth in the on-book loan portfolio. The net interest margin expanded significantly to 13.15% in FY25 from 11.24% in FY24, reflecting improved net spreads and operational efficiency.

Profitability indicators strengthened considerably, with return on total assets increasing to 6.10% in FY25 from 4.58% in FY24. Operating efficiency improved as reflected in the reduction of the cost-to-income ratio to 31.60% from 34.86%, driven by rationalization of operating expenses.

Assets Under Management Growth Trajectory

The company demonstrated consistent growth in assets under management, with total AUM increasing by approximately 45% year-on-year to ₹618.61 crores as of FY25. This comprised on-book AUM of ₹581.09 crores and off-book AUM of ₹37.52 crores. The expansion continued in 8MFY25, with total AUM rising to ₹833.33 crores, driven by higher disbursements across vehicle loan and SME/LAP loan segments.

The growth trajectory is supported by capital infusion through a preferential issue of fully convertible warrants aggregating approximately ₹43.00 crores, of which ₹8.66 crores was infused in FY25, with the balance ₹34.63 crores expected by end of FY26.

Capital Adequacy and Risk Management

Akme Fintrade maintains comfortable capitalization levels with a capital to risk-weighted assets ratio of 48.80% as of November 30, 2025, significantly above minimum regulatory requirements. The company's tangible net worth increased to ₹380.10 crores in FY25 from ₹222.25 crores in FY24, driven by capital raising activities and steady profit accretion.

Asset quality metrics show gradual improvement, with gross non-performing assets declining to 2.94% and net NPAs at 1.52% as of November 30, 2025. Collection efficiency remained satisfactory at approximately 96% for the 12 months ended November 2025, with on-time portfolio at around 92%.

Rating Outlook and Key Sensitivities

Infomerics expects the stable outlook to continue based on sustained AUM growth and improvement in overall profitability and asset quality levels while maintaining comfortable capitalization. The rating agency identified substantial scaling up of AUM above ₹1,000 crores through geographical diversification as a potential upward factor, while deterioration in AUM impacting capital position or adverse collection efficiency movements could pressure ratings downward.