Akme Fintrade (India) Limited (NSE:AFIL) disclosed on 24 August 2026 that its Loan and Investment Committee, authorised by the Board of Directors, has approved the issuance of Non-Convertible Debentures (NCDs) of up to Rs 50 crore in two series on a private placement basis, to be listed on the National Stock Exchange of India Limited.
Key Highlights
- The Loan and Investment Committee approved issuance of listed, rated, senior, secured, transferable, redeemable NCDs totalling up to Rs 50 crore across Series A1 and Series A2.
- Each series carries a size of up to Rs 25 crore, to be issued in one or more tranches on a private placement basis to eligible investors.
- The company is required to maintain a minimum security cover of at least 1.10 times over loan receivables throughout the tenure of both series of debentures.
- A penal interest rate of 2% per annum above the applicable coupon applies in the event of payment default, covenant breach, delay in security creation, or delay in executing the Debenture Trust Deed.
About the Company
Akme Fintrade (India) Limited (NSE:AFIL) is a Rajasthan-headquartered non-banking financial company (NBFC) that provides lending solutions primarily to underserved and semi-urban customer segments. The company focuses on vehicle finance, business loans, and allied credit products. Its shares are listed on the National Stock Exchange of India, placing it within the NBFC and financial services sector, which is regulated by the Reserve Bank of India under applicable NBFC norms.
Announcement in Detail
Pursuant to Regulations 30 and 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, Akme Fintrade (India) Limited filed a disclosure dated 24 August 2026. The Loan and Investment Committee, acting under authority delegated by the Board of Directors, approved the issuance of NCDs in two series: Series A1 of up to Rs 25 crore and Series A2 of up to Rs 25 crore, aggregating up to Rs 50 crore. Both series are described as listed, rated, senior, secured, transferable, and redeemable instruments.
Both series will be listed on the National Stock Exchange of India Limited and issued on a private placement basis. The security cover of at least 1.10 times must be maintained over the company's present and future loan receivables meeting stated eligibility criteria, on or before the Deemed Date of Allotment. Specific tenor, coupon rate, and redemption schedule are referenced as being specified in the respective key information documents, which were not reproduced in full within this exchange filing.
Impact on Investors
Investors will note that this issuance adds to the company's debt obligations, with the total proposed NCD quantum of up to Rs 50 crore representing a liability secured against loan receivables. The disclosed terms indicate that debenture holders carry protections including a minimum 1.10 times security cover and penal interest clauses, which are standard structural protections in rated secured NCD issuances under SEBI norms.
The filing shows that equity shareholders are not directly diluted by this NCD issuance since the instruments are non-convertible. However, shareholders will observe that increased borrowing through this route raises the company's overall leverage, which is a factor to consider alongside the company's existing capital adequacy and asset quality disclosures available in its exchange filings and annual reports.
Sector / Market Context
India's NBFC sector has been an active participant in the listed NCD market as a source of diversified funding, with SEBI data indicating consistent growth in private placement debt issuances by non-banking financial entities in recent years. The Reserve Bank of India's regulatory framework for NBFCs, including scale-based regulation introduced in 2021, governs capital adequacy and borrowing structures for companies such as Akme Fintrade. Secured NCD issuances on private placement terms have been a commonly used instrument by mid-sized NBFCs seeking to broaden their liability profile beyond traditional bank borrowings, in line with RBI guidelines encouraging diversified funding sources.