NBFC Stock To Raise Rs 44.96 Crores; Issues Convertible Warrants For Key Investors

Announcing a fund-raising plan to the tune of up to Rs 44.96 crore, Akme Fintrade (India) Limited, a non-deposit taking and registered Non-Banking Finance Company (NBFC), primarily engaged in financing the purchase of vehicles and business loans in rural and semi-urban regions. The company plans to issue interest-bearing flexible warrants at the price of Rs. 111 per warrant to the promoters and some specific individual members of the non-promoter group of persons.

Mr. Subhash Rathod, Mr. Saajan Rathod and Mr. Mayank Rathod have to further agree in writing to subscribe for ten lakh, five lakh and five lakh warrants post conversion securing a combined five per cent stake in the company. Also, according to this effort to raise money, Mr. Nirmal Jain who is the promoter is going to be assigned eleven lakh convertible warrants.

This announcement comes after sparkling financial performance for Akme Fintrade for H1FY25 and Q2FY25. Interest income increased by 34.29% compared to the previous year and reached Rs 42.79 crore. Profit After Tax (PAT) increased sharply by 152.07% compared to the previous year and amounted to Rs 16.75 crore. A year-on-year increase in the total assets managed by the company (AUM) was 24.51%, reaching the figure of Rs 495.41 crore. In addition, the Q2FY25 also recorded disbursements of Rs 59.23 crore representing an increase of 64.48% quarter on quarter and 185.72% year on year.

Focusing on the unmet financial needs of the rural and semi-urban population, Akme Fintrade was founded in 1996 and is a BSE and NSE-listed company. More specifically, its lending activities encompass financing of used commercial vehicles, two-wheelers as well as used two-wheelers, and also provides business loans to small business owners.

This initiative will help Akme Fintrade to raise funds which will help the Company in its growth plans while increasing its focus on providing customized financial services to the unserved markets.