Akme Fintrade Allots 25 Crore in Secured NCDs via Private Placement
Akme Fintrade (India) Limited announced that its Board of Directors had approved a significant debt issuance, allocating Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures (NCDs) through a private placement.The company's board meeting reviewed and approved the terms for issuing 25,000 NCDs in this transaction. These instruments were issued on a private placement basis to eligible investors, aggregating to INR 25,00,00,000 (Indian Rupees Twenty-Five Crores).
The debentures are listed as Senior, Secured, and Non-Convertible, with each unit valued at INR 10,000. The issue size stands at INR 25,00,00,000.
Key financial terms related to the issuance include a coupon/interest rate of 11.50%. Interest payments are scheduled monthly, while the principal repayment is due on maturity.
Debt Instrument Details
The NCDs have a tenure extending up to 24 months from the Deemed Date of Allotment (July 14, 2026), with a set Date of Maturity of July 14, 2028.Details of the debt instrument and associated covenants are provided below:
| Feature | Detail |
|---|---|
| Type of Security | Listed, Rated, Senior, Secured, Transferable, Redeemable Non-Convertible Debentures (NCDs) |
| Issuance Method | Private placement to eligible investors |
| Total Amount Raised | INR 25,00,00,000 (Indian Rupees Twenty-Five Crores) |
| Number of NCDs Allotted | 25,000 |
| Coupon Rate | 11.50% |
| Security Requirement | The company must maintain a Minimum Security Cover of at least 1.10x over loan receivables during the tenure of the Debentures. |
| Listing Status | Proposed to be listed on NSE Limited |
Covenant and Default Provisions
The debt instrument includes specific provisions regarding defaults, covering both payment and execution milestones.In cases of a payment default or any other Event of Default, the company agrees to pay an additional interest rate of 2% per annum above the applicable Interest Rate on the Outstanding Principal Amount from the date of the default until the issue is cured.
The transaction documents stipulate penalties for delays in executing covenants:
- Breach of Financial Covenants: If the Issuer defaults on any financial covenant, an additional interest rate of 2% p.a. over the Coupon Rate will be paid for the defaulting period. This penalty must be paid within thirty calendar days of the breach.
- Delay in Security Creation: Should the Issuer fail to execute the Hypothecation Agreement and perfect security within timelines, the Issuer shall pay additional interest of 2.00% above the Interest Rate.
- Delay in Execution of Debenture Trust Deed: If there is a delay in executing the Debenture Trust Deed, the company will pay penal interest of at least 2% p.a. over the Coupon Rate until the deed is executed.
AFIL Stock Price Movement
As of 11:50 AM, shares of Akme Fintrade (India) Limited are slipping by 0.31%, trading at ₹9.50 as they trade in the live market. The stock has seen a volume of 108,409 shares traded so far.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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