Akme Fintrade (India) Limited has approved a fresh issue of Non-Convertible Debentures, or NCDs, worth up to ₹50 crore. The decision came from the company’s Loan & Investment Committee at its meeting on August 24, 2026. The debt issue will take place through private placement and will have two separate series.
The company plans to issue senior, secured, listed, rated, transferable and redeemable NCDs. The proposed securities will be listed on the National Stock Exchange of India Limited, or NSE. The move gives Akme Fintrade another source of funds as it seeks to support its lending business and expand its financial capacity.
The total size of the proposed issue stands at ₹50 crore. The amount will be split equally between Series A1 and Series A2. Each series will have a size of up to ₹25 crore.
Two Series Under the New Issue
The structure of the NCD issue is simple. Series A1 will carry NCDs worth up to ₹25 crore, while Series A2 will also carry NCDs worth up to ₹25 crore. Both series will have the same broad structure as senior secured NCDs.
The securities will also be transferable and redeemable. The proposed NSE listing can provide a formal market route for these debt securities, subject to the required process and approvals.
A private placement means that the company does not offer these securities to the general public. Instead, the issue is made to selected eligible investors. This route is common among financial companies that need access to debt capital for their business needs.
For Akme Fintrade, the fresh NCD issue adds another layer to its debt access. The company has used debt instruments as one of its funding sources in the past, and the latest move shows its continued focus on debt-based capital.
Strong Security Cover for Investors
One of the important parts of the new NCD issue is the security cover. Akme Fintrade must maintain a minimum security cover of 1.10x over eligible loan receivables during the full tenure of the debentures.
In simple terms, the company must keep eligible loan receivables worth at least 1.10 times the value required under the security arrangement. The cover applies to both present and future loan receivables that meet the required eligibility rules.
This condition gives debt investors an additional layer of protection. Since Akme Fintrade is a lending company, its loan receivables form an important part of its asset base. The security cover connects the debt issue with those receivables.
The 1.10x requirement also matters for the company. It must maintain enough eligible assets to support the NCDs during their tenure. If the value or quality of eligible receivables falls, the company may face greater pressure to maintain the required cover.
Strict Terms in Case of Default
The NCD documents also contain strict terms for payment and other covenant defaults. If Akme Fintrade fails to make a payment on time, an additional interest rate of 2% per annum over the applicable interest rate will apply. This extra charge will remain in place from the date of default until the issue is cured or reaches final redemption.
A similar 2% per annum additional interest applies if the company breaches a covenant. The extra amount is payable for the period of the breach and must be paid within 30 calendar days of the breach.
The terms also cover delays in the creation of security. If the company does not execute the Hypothecation Agreement or complete the required security process within the prescribed time, an additional interest charge of 2% over the applicable interest rate can apply.
There is also a separate provision for a delay in the execution of the Debenture Trust Deed. Such a delay can result in penal interest of at least 2% per annum over the coupon rate until the trust deed is executed.
These provisions show that the issue has a clear focus on investor protection and compliance with the agreed debt terms.
Why the ₹50 Crore Issue Matters
For a financial company such as Akme Fintrade, access to debt capital is important because loans form the core of its business. The company can use fresh funds to support its lending activities, subject to its internal plans and regulatory requirements.
The new ₹50 crore issue can add to the company’s available debt resources without a direct equity issue. This means the transaction does not create immediate dilution for existing shareholders in the way a fresh share issue could.
At the same time, NCDs are not free capital. They create a financial obligation for the company. Akme Fintrade will have to meet the interest and repayment terms attached to the securities. The success of this fund raise will therefore depend on how well the company uses the capital and how effectively it manages its loan portfolio.
For investors, the main point is not only the size of the issue but also the quality of the assets that support the debt. Loan growth can help a lender improve revenue and profit, but poor asset quality can create pressure on earnings and cash flow.
Akme Fintrade Has Seen Strong AUM Growth
The latest NCD decision comes at a time when Akme Fintrade has reported strong growth in its assets under management. The company’s AUM rose 43% year on year to ₹965 crore in Q1 FY27, according to its recent company update.
Its profit after tax also rose 20.4% to ₹11.57 crore in the same quarter. These figures show that the company has expanded its business while also reported higher profit.
The company’s capital adequacy ratio stood at 46.37%, while its gross non-performing asset ratio was 2.91% in Q1 FY27. These numbers are important because a lender needs both capital strength and control over bad loans as its loan book grows.
The latest debt issue therefore comes against a backdrop of strong AUM growth. The key test ahead will be whether the company can convert extra debt capacity into healthy loan growth while keeping credit costs and bad loans under control.
Recent Debt Activity Adds Context
The ₹50 crore NCD approval also fits into a wider pattern of debt access by Akme Fintrade. The company recently secured a ₹15 crore term loan from Tourism Finance Corporation of India, as disclosed on August 18, 2026.
Earlier, Akme Fintrade also received a ₹20 crore term loan from SIDBI on August 3, 2026. The company has also carried out earlier NCD issues, which shows that debt markets have become an important source of funds for its business.
This makes the latest ₹50 crore issue more significant than a single fund raise. It forms part of the company’s wider effort to build access to multiple sources of debt capital.
What Investors Should Watch Next
The NCD approval is broadly positive for Akme Fintrade’s business because it gives the company access to another ₹50 crore of debt capital. There is no direct equity dilution from the issue, while the secured structure and 1.10x security cover offer protection to NCD holders.
However, shareholders should also watch the company’s leverage, interest costs, loan growth and asset quality. A larger loan book can support future revenue, but only if the company maintains good credit standards.
The next few quarters will therefore be important. Investors should watch whether AUM growth remains strong, whether profit grows at a healthy rate and whether gross and net bad loans remain under control.
Overall View
Akme Fintrade’s approval of the ₹50 crore NCD issue is an important debt market move. The issue will come through two series of up to ₹25 crore each, with both series structured as senior secured NCDs and proposed for NSE listing.
The 1.10x security cover and strict 2% additional interest clauses for payment, covenant, security creation and trust deed defaults provide clear safeguards for investors. For the company, the main opportunity is to use the new debt capital to support its lending business and future growth.
The transaction itself does not guarantee higher profits. Its real value will depend on how well Akme Fintrade deploys the funds, manages its loan book and protects asset quality. With AUM at ₹965 crore after 43% year-on-year growth in Q1 FY27, the company has already shown strong business expansion. The next stage will be about maintaining that pace without taking excessive credit or leverage risk.
ALSO READ: Ambitiou Plastomac Names Anil Bhambhani as Company Secretary
