September 4, 2023
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KLM Axiva Finvest NCD August 2023 Details
NCD Issue Opens on 24 August 2023
NCD Issue Closes on 6 September 2023
# NCD Guidance is given at the bottom of the post
About the Company:
KLM Axiva Finvest is a non-deposit taking systemically important non-banking finance company (“NBFC – Middle Layer”) primarily serving low and middle income individuals and businesses that have limited or no access to formal banking and finance channels. It had originally obtained a Certificate of Registration in the name of Needs Finvest Limited dated December 13, 1997 bearing registration no. 09.00006 issued by the RBI to commence the business of non-banking financial institution without accepting public deposits subject to the conditions mentioned in the Certificate of Registration under Section 45 IA of the RBI Act. Subsequently, the name of the Company was changed to KLM Axiva Finvest Limited and it has obtained fresh Certificate of Registration dated March 15, 2016 bearing registration no. 09.00006 from RBI. It operates primarily in four business verticals:
(i) gold loan business, lending money against the pledge of household jewellery,
(ii) micro, small and medium
enterprises loan,
(iii) personal loan and
(iv) microfinance loan.
As on June 30, 2023, it operated through 684 branches across six states namely Kerala, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Maharashtra managed through its corporate office located at Kochi.
As of March 31, 2023, March 31, 2022 and March 31, 2021, its AUM was Rs 1,46,032.97 lakhs, Rs 1,07,296.72 lakhs and ? 74,730.09 lakhs, respectively. It AUM increased at a CAGR of 39.79% from Rs 74,730.09 lakhs as of March 31, 2021 to Rs 1,46,032.97 lakhs as of March 31, 2023.
Get more details about the company @
NCD Promoter: Ms. Biji Shibu
NCD Rating
The company has received a rating of IND BBB-/Stable by India Ratings & Research Private Limited for the NCDs proposed to be issued pursuant to this Issue.
| KLM Axiva Finvest NCD August 2023 Detail | |
| Issue Open | Aug 24, 2023 – Sep 6, 2023 |
| Security Name | KLM Axiva Finvest Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 75.00 Crores |
| Issue Size (Shelf) | Rs [.] Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 5 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | IND BBB-/Stable by India Ratings & Research Private Limited |
| Tenor | 400 days, 16, 18, 82 months, and 2, 3, 5 years |
| Series | Series I to X |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Vistra Itcl India Limited |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 40% |
| Retail | 50% |
| Category 4 | 0% |
| NCD’s Offered by Category | |
| Category ? | NCD’s Reserved |
| Institutional | 75,000 |
| Non-Institutional | 3,00,000 |
| Retail | 3,75,000 |
| Category 4 | 0 |
| Total NCD’s | 7,50,000 |
| KLM Axiva Finvest Limited NCD Coupon Rates | ||||||||||
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | |
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Monthly | Annual | Monthly | Annual | Monthly | Annual | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 400 Days | 16 Months | 18 Months | 2 Years | 2 Years | 3 Years | 3 Years | 5 Years | 5 Years | 82 Months |
| Coupon (% per Annum) | 9.00% | NA | 9.35% | 9.50% | 9.75% | 9.75% | 10.00% | 10.50% | 10.75% | NA |
| Effective Yield (% per Annum) | 9.38% | 9.60% | 9.76% | 9.92% | 9.75% | 10.20% | 10.00% | 11.02% | 10.75% | 10.68% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,130 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 2,000 |
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
Onward lending, financing, and repayment/prepayment of principal and interest on existing borrowings.
General Corporate Purposes.
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| Address of the Company Door No. 8-13, Plot No. 39, First Floor, Ashoka Co mplex, Mythripuram Colony, Gayathrinagar X Road, Vaishalinagar P.O., Hyderabad, Telangana-500 079 NCD Lead Managers Vivro Financial Services Pvt ltd NCD Registrar Kfin Technologies Limited |
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KLM Axiva Finvest NCD August 2023
Red Herring Prospectus
Analysis & Guidance:
As on 31. March 2021, Telangana based company had net NPA of Rs. 34.96 Cr., compared to net worth of Rs. 83.93 Cr. The Equity/ Networth has increased sharply during the last two years. As on 31 March 2023, the net NPA was Rs. 11.91Cr. and net NPA to AUM ratio is 0.82%. Outstanding debt as on 30 June 2023 is Rs. 1424 Cr. as compared to Networth of Rs 2615 Cr on 31 March 2023. NCD rating is IND BBB-/Stable.
NCD issue is not quite attractive.
| KLM Axiva Finvest NCD Tranche II 2023 | |
| Subscription Status | |
| On 06.09.2023 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 0.00 T |
| Non-Institutional | 1.38 T |
| HNI | 0.00 T |
| Retail | 1.96 T |
| Total | 1.53 T |
