Akme Fintrade (India) Limited has completed the allotment of ₹20 crore worth of non-convertible debentures (NCDs) following its Board of Directors meeting held on December 22, 2025. The NBFC successfully allotted 20,000 listed, rated, senior, secured, transferable, redeemable NCDs through private placement.

NCD Allotment Details

The Board meeting, which commenced at 10:30 AM and concluded at 11:00 AM, approved the final allotment terms for the debenture issuance.

Security and Coverage Terms

The company will maintain a minimum security cover of 1.10x (one decimal one zero times) at all times during the tenure of the debentures. This security cover will be maintained over loan receivables, present and future, of the issuer that fulfill specific eligibility criteria.

Default and Penalty Provisions

The debenture terms include comprehensive penalty structures for various scenarios:

Payment Default

In case of payment default or any Event of Default, the company will pay an additional interest rate of 2.00% per annum above the applicable interest rate on the outstanding principal amount until the default is cured.

Breach of Covenants

For defaults in performance of covenants and undertakings, including financial covenants, an additional interest of 2.00% per annum over the coupon rate will be payable for the defaulting period. The penalty must be paid within 30 calendar days from the date of breach.

Security Creation Delays

If the issuer fails to execute the Hypothecation Agreement and perfect security within prescribed timelines, additional interest of 2.00% over the interest rate will be applicable. Additionally, if the Debenture Trust Deed is not already executed, the company shall execute it within SEBI prescribed timelines or pay penalty interest of at least 2.00% per annum over the coupon rate.

Company Performance Context

As per the company's recent financial results for the half-year ended September 30, 2025, Akme Fintrade demonstrated strong growth across key metrics:

The successful NCD allotment provides the company with additional capital to support its lending activities in rural and semi-urban markets, where it primarily offers vehicle finance and business loans. The company, incorporated in 1996 and listed on both BSE and NSE, continues to expand its presence in the NBFC sector with this latest fundraising initiative.

Akme Fintrade (India) Limited , a non-banking financial company (NBFC), has announced its financial results for the quarter and half-year ended September 30, 2025, showcasing robust growth in key financial metrics.

Financial Highlights

The company reported a 17.32% year-on-year increase in net profit, reaching ₹19.65 crore for the half-year ended September 30, 2025, compared to ₹16.75 crore in the same period last year. This growth was primarily driven by higher loan disbursements and an increase in net interest income.

Loan Portfolio and Asset Quality

Akme Fintrade's loan portfolio demonstrated significant expansion:

• Assets Under Management (AUM) increased by 54.80% to ₹767.46 crore in H1 FY26.
• Advances grew by 10.98% to ₹677.76 crore during the quarter.
• The company maintained a strong capital adequacy ratio of 51.66%.

Asset quality metrics showed improvement:

• Gross Stage 3 assets stood at 2.96%
• Net Stage 3 assets were at 1.43%

Operational Performance

The company's operational efficiency improved, with Return on Equity for Q2 FY26 reaching 10.03%, up from 9.94% in Q1 FY26.

Management Commentary

Akash Jain, CEO of Akme Fintrade, stated, "We have been witnessing good growth in demand for loans, especially in the vehicle segment in semi-urban and rural markets. There is a huge untapped potential in the MSME and vehicle loan segments in these markets, and our well-entrenched presence helps us address this gap."

He added, "Our strong capital position, backed by our ability to raise funds at competitive rates through multiple channels, and a good understanding of these markets puts us in good stead and enables us to further grow our loan book in the coming quarters."

Future Outlook

The company expressed optimism about future growth, citing increased demand from rural and semi-urban markets. Akme Fintrade also announced its plans to enter the gold loan business, for which it has received board approval.

Debt Securities and Compliance

During the period, Akme Fintrade issued non-convertible debentures listed on the National Stock Exchange. The company maintains a debt-equity ratio of 0.96 times and reported compliance with all financial covenants mentioned in its transaction documents.

Akme Fintrade continues to focus on expanding its presence in the vehicle financing and MSME lending segments, leveraging its strong market position and capital base to drive growth in the coming quarters.