Akme Fintrade (India) Limited has successfully allotted 25,000 Secured Non-Convertible Debentures (NCDs) worth ₹25 crore through a private placement. The NCDs carry an 11.50% annual interest rate and a 24-month tenure. This move aims to bolster capital for the NBFC's lending activities.

Akme Fintrade Allots ₹25 Crore NCDs

Akme Fintrade (India) Limited has successfully allotted 25,000 Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures (NCDs) worth ₹25 crore.

Reader Takeaway: Raises capital at 11.50% for lending; penalty clauses for default.

What just happened

The company completed the allotment of 25,000 NCDs totaling ₹25 crore through a private placement. Each debenture has a face value of ₹10,000.

Why this matters

This issuance provides Akme Fintrade, an NBFC, with essential capital to fund its lending operations. The interest rate of 11.50% per annum will be the cost of this capital for the company.

The backstory

Akme Fintrade (India) Limited is a non-banking financial company. Raising funds through debt instruments like NCDs is a common practice for NBFCs to manage their liquidity and operational needs.

What changes now

The company has secured additional funds for its business. The NCDs are secured with a minimum cover of 1.10x over loan receivables and have a tenure of 24 months.

Risks to watch

The NCDs include a penalty clause where the company must pay an additional 2% interest per annum if there is a default in payment, breach of covenants, or delays in administrative processes like security creation.

Peer comparison

(No peer comparison data available in the filing)

Context metrics (time-bound)

The NCDs have a coupon rate of 11.50% per annum and a tenure of 24 months.

What to track next

Investors will monitor the company's ability to service this debt and its overall financial performance and compliance with the NCD covenants.