This microcap NBFC stock jumps 10% after board nods fundraise via NCDs

Akme Fintrade (India) shares jumped 9.9 per cent, logging an intra-day high at ₹7.55 per share on BSE, after its board approved issuing non-convertible debentures (NCDs) worth ₹50 crore

Akme Fintrade (India) shares jumped 9.9 per cent on Friday, logging an intra-day high at ₹7.55 per share on BSE. At 10:42 AM, Akme Fintrade's share price was trading 6.26 per cent higher at ₹7.3 per share. In comparison, BSE Sensex was down 0.69 per cent at 81,432.76.  The market capitalisation of the company stood at ₹311.53 crore. The 52-week high of the stock was at ₹12.97 per share and the 52-week low at ₹6.38.

Why were Akme Fintrade rising? 

The stock gained after its board approved issuing non-convertible debentures (NCDs) worth ₹50 crore in one or more tranches. 

 

“The board has, inter-alia, allotted 50000 (Fifty Thousand) Listed, Rated, Senior, Secured, Transferable,

 

Redeemable, Non-Convertible Debentures (“Debentures”) of ₹10,000/- each aggregating to ₹ 50,00,00,000/- on private placement basis,” the filing read. 

 

The tenure of the instrument is up to 24 months from the deemed date of allotment, August 22, 2025. It will mature on August 22, 2027.   Akme Fintrade India Ltd is a public limited non-banking financial company (NBFC) working in the industry since 1996. The company mainly deals in two-wheeler loans, four-wheeler loans, business loans, mortgage loans, etc. 

What are NCDs? 

NCDs are fixed-income instruments that companies issue to raise debt without diluting equity. They pay a fixed coupon at set intervals and return principal at maturity, and unlike convertible debentures, they cannot be converted into shares. 

 

Firms use NCDs to secure medium- to long-term funding, diversify beyond bank loans, and tailor terms (tenor, coupon frequency, call/put options); NCDs may be secured by assets or unsecured. 

 

For investors, NCDs can offer higher yields than bank fixed deposits or government bonds and provide predictable cash flows, with listed NCDs tradable on exchanges. Key risks include credit/default risk (assess ratings, covenants, issuer financials), liquidity risk (thin secondary-market trading), interest-rate risk (prices fall if rates rise before maturity), and structural risks (subordination, callable features). 

 

Before investing, check the credit rating, whether the debenture is secured, the coupon type and frequency, yield to maturity (YTM), tenor and embedded options, tax treatment (coupon taxed as income), and the prospectus for covenants and use of proceeds.