Tuesday, February 21, 2023

KLM Axiva Finvest Limited launches NCD Issue of Rs. 250 crore.

February 21st, 2023, Mumbai - KLM Axiva Finvest limited (the “Company”) has launched its 8th series of public issue of secured, redeemable, non-convertible debentures to raise up to Rs. 250 crore. 

The base issue size is Rs. 125 Crore with an option to retain an oversubscription of up to Rs. 125 crore, aggregating up to a limit of Rs. 250 Crore (overall Issue Size).

The annual interest rate set for the Issue is ranging from 9.50% to 10.75% and is available in monthly, annually and cumulative options for tenures 400 days, 16 months, 18 months, 2 years, 3 years, 5 years and 82 months, giving the effective yield of up to 11.02% for the longer duration. The minimum application amount for the Issue is 5 NCDs i.e. Rs. 5,000 (across all options of NCDs).

The Company proposes to utilise the funds which are being raised through the Issue, after deducting the Issue related expenses to the extent payable by our Company, towards funding the objects: i) For the purpose of onward lending, financing and repayment/prepayment of principal and interest on existing borrowings; and ii) General Corporate Purposes. The NCDs are proposed to be listed on BSE Limited and the allotment will be on first-cum-first-serve basis.

Who Can Apply?

Category I

Resident Public Financial Institutions as defined in Section 2(72) of the Companies Act 2013, statutory corporations including state industrial development corporations, scheduled commercial banks, co-operative banks, regional rural banks, and multilateral and bilateral development finance institutions which are authorised to invest in the NCDs;

Provident Funds of minimum corpus of ₹ 2,500 lakhs, Pension Funds of minimum corpus of ₹ 2,500 lakhs, Superannuation Funds and Gratuity Fund, which are authorised to invest in the NCDs;

Alternative Investment Funds, subject to investment conditions applicable to them under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012;

Resident venture capital funds registered with SEBI; 

Insurance Companies registered with the IRDA;

National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India published in the Gazette of India);

Insurance funds set up and managed by the Indian army, navy or the air force of the Union of India or by the Department of Posts, India;

Mutual Funds, registered with SEBI; and

Systemically Important NBFCs.

Category II

Companies falling within the meaning of Section 2(20) of the Companies Act 2013; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the NCDs;

Educational institutions and Associations of Persons and/or bodies established pursuant to or registered under any central or state statutory enactment; which are authorised to invest in the NCDs;

Trust including Public/private charitable/ religious trusts which are authorised to invest in the NCDs;

Association of persons

Scientific and/or industrial research organisations, which are authorised to invest in the NCDs;

Partnership firms in the name of the partners; 

Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009); and

Resident Indian individuals and Hindu undivided families through the Karta applying for an amount aggregating to a value exceeding ₹ 5 lakhs.

Category III*

Resident Indian individuals; and

Hindu undivided families through the Karta.

* Applications aggregating to a value not more than ₹ 5 lakhs.

As per the prospectus filed on the SEBI, As of September 30, 2022, March 31, 2022, March 31, 2021 and March 31, 2020, the company’s AUM was ₹ 1,28,713.05 lakhs, ₹ 1,07,296.71 lakhs, ₹ 74,730.11 lakhs and ₹ 51,354.53 lakhs, respectively. And their AUM increased at a CAGR of 44.55% from ₹ 51,354.53 lakhs as of March 31, 2020 to ₹ 1,07,296.71 lakhs as of March 31, 2022. 

As, on December 31, 2022, the Company had a distribution network of 660 branches spread across six states namely Kerala, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Maharashtra. The strategy of Company for branch expansion include further strengthening its presence in South Indian states by providing higher accessibility to customers as well as leveraging its expertise and presence in Southern Indian states. The Company also seek to expand its business through branch expansion in non-southern states. 

The NCDs proposed to be issued under this Issue have been rated “IND BBB-/Stable”, by India Ratings & Research Private Limited. The Lead Manager to the Issue is Vivro Financial Services Private Limited, Vistra ITCL (India) Limited is the Debenture Trustee for the Issue and KFin Technologies Limited is the Registrar to the Issue.

About KLM Axiva Finvest Limited:

KLM Axiva is a non-banking finance company (“NBFC”) primarily serving low- and middle-income individuals and businesses with 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 jewellery, (ii) micro, small, and medium enterprises loan, (iii) personal  loan (iv) microfinance loan.

Their loan customers are typically businessmen, vendors, traders, farmers, salaried individuals, and families, who for reasons of convenience, accessibility, or necessity, avail of our credit facilities.

Link of the prospectus and for more details: https://klmaxiva.com/ncd

Disclaimer: KLM Axiva Finvest Limited is subject to market conditions and other considerations, proposing a public issue of Secured Redeemable Non-Convertible Debentures and has filed the prospectus dated February 7, 2023 (“Prospectus”) with the Registrar of Companies, Telangana at Hyderabad, BSE Limited and SEBI. The Prospectus is available on the website of the Company at www.klmaxiva.com, on the website of the stock exchange at www.bseindia.com and on the website of the Lead Manager at www.vivro.net. All investors proposing to participate in the public issue of NCDs by KLM Axiva Finvest Limited should invest only on the basis of information contained in the Prospectus. Please see section entitled“Risk Factors” beginning on page 18 of the Prospectus for risk in this regard.

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