Board approves NCD issue up to INR 50 Crores in Series A1 and A2; committee authorised up to INR 300 crore

Board meeting outcome: Akme Fintrade (India) Ltd.

Sat 10 Oct 2026

NCD Issue Size

up to INR 50 Crores — Series A1 and Series A2 — on private placement

Series A1 and A2 Terms

Series A1: up to INR 25 Crores, tenure up to 24 months; Series A2: up to INR 25 Crores, tenure up to 30 months

Minimum Security Cover

at least 1.10x

The board of Akme Fintrade (India) Ltd met on Saturday, October 10, 2026 and approved raising money by issuing Non-Convertible Debentures (NCDs) on a private placement basis.

What the board approved

• Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures of up to INR 50 Crores (Indian Rupees Fifty Crores Only), in Series A1 and Series A2, to be issued in one or more tranches.
• The Loan & Investment Committee of the board has been authorised to determine and approve the quantum, timing and other terms of the NCD issue, up to INR 300 crore.

What an NCD is, in simple words

A non-convertible debenture is money lent to the company by investors. It is "non-convertible" because it never turns into shares of the company. Here the debentures are being issued privately to eligible investors, and they are proposed to be listed on the National Stock Exchange of India Limited.

Series-wise details

• Series A1: size up to INR 25 Crores; tenure up to 24 months from the Deemed Date of Allotment.
• Series A2: size up to INR 25 Crores; tenure up to 30 months from the Deemed Date of Allotment.
• Coupon/interest offered and the schedule of payment of coupon/interest and principal, and redemption, are as specified in the key information document.
• Special rights, interest or privileges attached to the instruments: NA.

Security

• For both series, the company shall maintain a security cover of at least 1.10x at all times during the tenure of the debentures (the "Minimum Security Cover") over loan receivables, present and future, of the issuer that fulfil the eligibility criteria, with the prescribed security cover on or prior to the Deemed Date of Allotment.

What happens if the company defaults or is late

• Payment Default including 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 it is cured or the final redemption amount is paid, whichever is earlier.
• Breach of Covenants & Undertakings (Negative, Affirmative and Reporting), including financial covenants: additional interest of 2% p.a. over the coupon rate is payable for the defaulting period, to be paid within 30 calendar days of the breach, and at the end of every subsequent 30-day period until the breach is cured in full.
• Delay in security creation: if the company fails to execute the Hypothecation Agreement and perfect security within the timelines, additional interest of 2.00% over and above the interest rate applies.
• Delay in execution of the Debenture Trust Deed: if not already executed, the company shall execute it within the timelines prescribed by SEBI; on a delay, penal interest of at least 2% p.a. over the coupon rate applies till execution.

How to read this

The board has approved a borrowing programme, and the actual drawdown and timing sit with the committee. For a lending business, issuing debentures is a way of arranging funds for its loan book. The instruments here are secured, with a minimum security cover of 1.10x over loan receivables.

The extra-interest clauses are protections written in favour of debenture holders: if payment is delayed, or if the security or trust deed paperwork is delayed, the cost of the borrowing rises by about 2% per annum for that period.

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