Akme Fintrade Secures Rs 50 Crore Through NCD Issuance

Akme Fintrade (India) Limited has concluded the issuance and allotment of Rs 50 crore in secured, rated, and transferable non-convertible debentures (NCDs). The capital raise was finalized on October 19, 2026, through a private placement structure.

Reader Takeaway: The company has secured capital at 11.40%-11.60% interest rates but faces strict 1.10x security coverage obligations.

What just happened

The board of directors at Akme Fintrade approved the allotment of 50,000 NCDs, split equally into two series of Rs 25 crore each. Series A1 carries an 11.40% coupon rate with a 24-month tenure, while Series A2 carries an 11.60% rate with a 30-month maturity. Both series require interest payments on a monthly basis, with principal repayment scheduled at the end of the respective tenures.

Why this matters

This fund-raising effort provides the company with liquidity to support its ongoing lending operations. By listing these instruments on the NSE, the company enhances its transparency and provides a tradable asset for institutional investors. The inclusion of a 1.10x security cover ensures that the debt remains backed by sufficient loan receivables, offering a layer of comfort to the bondholders.

Risks to watch

Investors should monitor the company’s ability to maintain the stipulated security cover of 1.10x. Failure to meet financial covenants or payment obligations triggers an additional 2% penalty interest rate per annum. These clauses are critical to observe as they can impact the company’s profitability and cash flow management if operational performance slips.

What to track next

Shareholders should look for upcoming quarterly reports to see how this debt is deployed in the company’s loan book and how the interest expense affects the net interest margin (NIM) in the following periods.