11.3% KLM Axiva Finvest NCD July-2024
KLM Axiva Finvest is coming up with secured NCD Issue that would open for subscription on July 22, 2024. KLM Axiva Finvest is a non deposit taking systemically important NBFC in India. KLM Axiva Finvest NCD interest rates are up to 10.75% and yield works out up to 11.3%. Your money would get doubled in 79 months. Should you invest in KLM Axiva Finvest NCD issue of July-2024? What are the risk factors one should consider before investing KLM Axiva NCD 2024 issue? Let me provide a complete review of these NCD bonds.
About KLM Axiva Finvest Limited
They are a non-deposit taking and non – systemically important non-banking finance company primarily serving low and middle income individuals and businesses that have limited or no access to formal banking and finance channels. They operate primarily in four business verticals:
(i) Gold loan business, lending money against the pledge of household jewelry
(ii) Micro, small and medium enterprise loan
(iii) Personal loan and
(iv) Microfinance loan to women customers.
KLM Axiva Finvest NCD – July-2024 Issue Details
Subscription opening Date
22-Jul-24
Subscription closure Date
02-Aug-24
Issuing Security Name
KLM Axiva Finvest Limited
Security Type
Secured, Redeemable and Non-Convertible NCDs
Issue Size (Base)
Rs 75 Crores
Issue Size (Option to retain over subscriptoin)
Rs 75 Crores
Total issue size
Rs 150 Crores
Issue price
Rs 1,000 per bond
Face value
Rs 1,000 per bond
Series
I to X
Minimum Lot size
5 bonds and 1 bond there after
Tenure
400 days, 16, 18 & 79 Months, 2 , 3 & 5 Years
Interest Payment frequency
Monthly, yearly and on maturity
Listing on
Within 6 working days on BSE
Lead Manager
Vivro Financial Services Private Limited
Debenture Trustee/s
Vistra ITCL (India) Limited
KLM Axiva Finvest NCD July-2024 – Interest Rates
Series
I
II
III
IV
V
VI
VII
VIII
IX
X
Frequency of Interest Payment
Monthly
Cumulative
Monthly
Monthly
Annual
Monthly
Annual
Monthly
Annual
Cumulative
Tenure
400 Days
16 Months
18 Months
2 Years
2 Years
3 Years
3 Years
5 Years
5 Years
79 Months
Coupon (% per Annum)
9.50%
NA
9.85%
10.00%
10.25%
10.25%
10.25%
10.75%
11.00%
NA
Effective Yield (% per Annum)
9.92%
9.96%
10.31%
10.47%
10.25%
10.75%
10.50%
11.30%
11.00%
11.10%
Amount on Maturity (In Rs.)
1,000
NA
1,000
1,000
1,000
1,000
1,000
1,000
1,000
2,000
KLM Axiva Finvest NCD July-2024 – Ratings
The secured NCDs have been rated as BBB-/Stable by India Ratings and Research and ACUITE BBB by Acuite Ratings and Research Limited.
The rating of NCDs indicates that instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations and carry a moderate credit risk.
KLM Axiva Finvest NCD July-2024 – Are these secured NCD bonds?
These are senior bonds. Means the claims of the debenture holders holding NCDs shall be superior to the claims of any unsecured creditors, subject to applicable statutory and/or regulatory requirements.
The NCDs would constitute secured obligations of our company and shall have first ranking pari passu charge with existing secured creditors, on all movable assets including book debts and receivables, cash and bank balances, other movable assets, loans and advances, both present and future of the Company equal to the value of one time of the NCDs outstanding plus interest accrued thereon.
How is the company doing in terms of profits?
Its profits are as below:
Year ended Mar-2020 – Rs 50.6 Lakhs
Year ended Mar-2021 – Rs 705.8 Lakhs
Year ended Mar-2022 – Rs 1,138.3 Lakhs
Year ended Mar-2023 – Rs 1,833.1 Lakhs
Year ended Mar-2024 – Rs 2,302.8 Lakhs
KLM Axiva Finvest NCD July-2024 – Why to invest?
These NCDs offer attractive interest rates up to 10.75% and yield up to 11.3%.
The company is earning consistent and improving margins in the last few years. One should always invest in consisting growing companies with strong financials where the repayment to NCD investors is done on time without delay.
It issues Secured NCDs. In case of any underperformance of the company and the company gets shut down for some reason, NCD investors would get preference in repayment of capital along with interest. Hence, it is safe to invest in such secured NCD options. However, it is only preference is given to NCD investors and no guarantee that entire amount would be paid-back in such cases.
KLM Axiva Finvest NCD July-2024 – Why not to invest?
Company has received Show-Cause notices from RBI and any adverse action taken could affect its business.
They are subject to supervision by regulatory authorities and non-compliance with observations made by regulatory authorities during their periodic inspections could expose them to penalties and restrictions which in turn may affect its business and operations.
Company, its Promoter and Directors and other companies have been subject to search and seizure operations conducted by the Indian income tax authorities.
Its financial performance is particularly vulnerable to interest rate volatility.
High levels of customer defaults or delays in repayment of loans could adversely affect its business.
If they are unable to manage the level of NPAs in its Loan Assets, its financial position and results of operations may suffer.
Investors should refer all other Internal and external factors indicated in the KLM Axiva Finvest July-2024 NCD prospectus.
How to apply KLM Axiva Finvest NCD July-2024 issue?
KLM Axiva Finvest NCD Issue is available in only in demat form. You can apply online or through any of the broker website where you are maintaining a demat account. Full form can be downloaded on the lead manager website. For more information on this, you can refer prospectus.
Is KLM Axiva NCD safe?
KLM Axiva NCDs are rated by IND Ratings as IND BBB-/Stable and Acuite Ratings as ACUITE BBB. NCD bonds with such ratings are considered as high risk.
KLM Axiva Finvest NCD July-2024 Bonds – Review and Conclusion
KLM Axiva Finvest is offering secured NCDs as part of July-2024 issue. These interest rates are high and up to 10.75% and yield works out to be up to 11.3%. These are secured NCDs too.
On the other side, these bonds carry a low credit rating of BBB- Stable by IND Ratings and Acuite Ratings which are high risk. Your capital could be at risk if such NBFC company gets into financial crisis. Don’t forget about the DHFL crisis earlier and delays from many NBFC companies in repayment of the principal capital to NCD investors.
Investors may avoid such high risk NCDs for now.
Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)
