A.K. Capital Services Reports 54% Surge in Q2 Net Profit, Declares Interim Dividend

AK Capital Services has reported a significant increase in its consolidated net profit for the second quarter, alongside declaring an interim dividend for its shareholders.

Financial Performance

The Mumbai-based financial services company saw its consolidated net profit jump by 54% to 309.00 million rupees in Q2, compared to 201.00 million rupees in the same period last year. This substantial growth in profitability underscores the company's strong performance in the quarter.

Revenue for the quarter also showed impressive growth, increasing to 1.50 billion rupees from 1.20 billion rupees year-over-year, marking a 25% rise.

Interim Dividend Declaration

In a move that will likely please shareholders, the Board of Directors of AK Capital Services has declared an interim dividend of 16.00 rupees per fully paid-up equity share, with a face value of 10.00 rupees per share.

The company has set the record date as Thursday, November 27, to determine shareholder eligibility for the interim dividend. The dividend is scheduled to be paid on or before December 6.

Other Corporate Actions

The Board meeting, which commenced at 6:08 p.m. and concluded at 6:51 p.m. on November 7, also saw several other important decisions:

Financial Results Approval: The Board approved the unaudited standalone and consolidated financial results for Q2 and H1.
Reclassification of Shareholders: Approval was granted for the reclassification of certain shareholders from the 'Promoter'/'Promoter Group' category to the 'Public' category, subject to necessary approvals.
Subsidiary Dissolution: The Board consented to the voluntary strike-off and dissolution of A.K. Capital (Singapore) Pte. Ltd., a wholly-owned subsidiary that has been non-operational for the past two years.

Market Reaction and Future Outlook

The strong financial performance and the declaration of an interim dividend may potentially boost investor confidence in AK Capital Services. The company's ability to grow its revenue and significantly increase profitability in the current economic climate is noteworthy.

As the company continues to streamline its operations, including the dissolution of its non-operational Singapore subsidiary, it appears to be focusing on strengthening its core business in the Indian market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.82%	+1.55%	+9.85%	+17.79%	+2.74%	+371.52%

AK Capital Services and four related group companies have reached a settlement with the Securities and Exchange Board of India (SEBI) regarding alleged violations in the public issue of non-convertible debentures (NCDs) by Dewan Housing Finance Limited (DHFL). The settlement, detailed in an order dated October 16, covers five companies within the A.K. Capital Group.

Settlement Details

The companies involved in the settlement and their respective settlement amounts are as follows:

Company	Settlement Amount (in ₹)
A.K. Capital Services Limited	54,67,500
A.K. Stockmart Private Limited	1,08,73,606
A.K. Capital Finance Limited	96,00,000
E-Ally Securities (India) Private Limited	86,00,000
Ridhi Sidhi Distributors Private Limited	88,00,000
Total	4,33,41,106

Alleged Violations

SEBI's investigation revealed that the A.K. Capital Group allegedly:

Used Power of Attorney to submit bid applications for 14,08,015 NCDs on behalf of 911 applicants in DHFL's public issue.
Provided loans at 11% and 10.5% interest rates to applicants for NCDs with lower coupon rates of 8.90% and 9.00%.
Sold the allotted NCDs through off-market transactions while providing guaranteed profitable exits.

The group reportedly made a net gain of ₹26,05,075 from these transactions.

Settlement Terms

Under the settlement terms:

The companies will pay a total of ₹4,33,41,106, which includes disgorgement amounts and 12% annual interest on unlawful gains.
SEBI will not initiate enforcement action for these violations.
The order reserves SEBI's rights to take action if any misrepresentation or breach of conditions is found.

Company Statement

AK Capital Services has confirmed that there is no expected material impact on its financial or operational activities due to this settlement.

Recent Management Changes

In a separate development, Mr. Vikram Puri, Head Director-Corporate Relations of AK Capital Services Limited, has resigned from his position effective October 17, citing personal and other professional commitments.

This settlement highlights the regulatory scrutiny on financial practices in the Indian capital markets and underscores the importance of adherence to regulatory norms in public issues of securities.