Akme Fintrade (India) Limited has approved the issuance of Non-Convertible Debentures (NCDs) worth up to INR 20 crores. This decision, made by the company's Loan Investment Committee, aims to strengthen its capital structure through private placement.

Key Details of the NCD Issuance

Additional Terms and Conditions

The company has outlined specific terms for these debentures:

1. Listing: The NCDs will be listed on the National Stock Exchange of India Limited.

2. Security Coverage: Akme Fintrade commits to maintaining security coverage through LAP/Equipment Loans/Business Loans at 1.25 times or 125% of the aggregate principal outstanding amount of the NCDs.

3. Covenant Breach Penalty: In the event of a covenant breach, the company will incur an additional 2% per annum coupon over the applicable rate. This penalty will remain in effect until full redemption or covenant replenishment.

Upcoming Financial Results

Akme Fintrade has scheduled a Board of Directors meeting for November 13, 2025, to consider and approve the unaudited financial results for the quarter and half-year ended September 30, 2025. The trading window for the company's shares will remain closed from October 1, 2025, until 48 hours after the announcement of these financial results.

This NCD issuance represents a strategic financial move for Akme Fintrade, potentially aimed at raising capital for business expansion or refinancing existing debt. The secured nature of the debentures, coupled with the listing on a major stock exchange, may appeal to investors looking for rated debt instruments in the financial services sector.

Akme Fintrade (India) Limited has approved the issuance of secured debentures worth ₹30 crores. This decision was announced following a board meeting on October 16, 2025, demonstrating the company's efforts to raise capital through debt instruments.

Key Details of the Debenture Issue

The board has approved the allotment of 30,000 Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures (NCDs). Here are the essential details of the issue:

Security and Covenants

The company has put in place measures to secure the debentures:

• The NCDs will be secured against LAP/Equipment Loans/Business Loans.
• Akme Fintrade will maintain security value at 1.25 times or 125.00% of the outstanding principal amount of NCDs.
• In case of covenant breaches, an additional coupon of 2.00% per annum will be applicable on all outstanding amounts.

Implications for Investors

This debenture issue presents an opportunity for eligible investors seeking fixed-income instruments. The 12.00% coupon rate, coupled with monthly interest payments, could be attractive in the current market environment. However, potential investors should note that these are secured NCDs, implying a lower risk profile compared to unsecured bonds, but still carrying inherent market and credit risks.

Company's Perspective

For Akme Fintrade (India) Limited, this debenture issue represents a strategic move to raise funds, possibly for expansion, refinancing existing debt, or strengthening its capital base. The decision to opt for secured NCDs might indicate the company's commitment to offering a safer investment option while managing its cost of capital.

As the financial landscape continues to evolve, such corporate actions provide insights into how companies are navigating funding challenges and opportunities in the current economic climate.