KLM Axiva Finvest Limited launched the public issue of secured, redeemable, non-convertible debentures
KLM Axiva Finvest Limited has a major presence in South India and is rapidly expanding across India. Since its inception in 1997, KLM has more than 500 branches all over the country, including a recent branch addition in the financial hub Mumbai[BB1] . KLM Axiva Finvest Limited has opened the public issue of secured, redeemable, non-convertible debentures for the purpose of onward lending, financing and repayment/prepayment of principal and interest on existing borrowings.
by Suman Gupta
Mumbai – KLM Axiva Finvest Limited (“Company”) a non-deposit taking systemically important non-banking finance company (“NBFC”) announced its public issue of secured, redeemable, non-convertible debentures of face value of ₹ 1,000 each (“NCDs”) aggregating up to ₹ Rs. 10,000 lakhs with an option to retain over subscription up to ₹ 10,000 lakhs, aggregating up to ₹ 20,000 lakhs (“Issue”) at Trident hotel Mumbai for the purpose of onward lending, financing and repayment/prepayment of principal and interest on existing borrowings. After the success of earlier issues, the Company has successfully launched its 7th Issue of NCDs to attract a pool of investments with a vision of expanding gold loan services across Pan India. Being an NBFC, the Company primarily serves low and middle-income individuals and businesses with limited or no access to formal banking and finance channels. The Company offers variety of gold loan schemes to its customers. The schemes differ in relation to the amount advanced per gram of gold, tenure, interest rate chargeable and amount of loan.
Specialized Gold loan NBFCs are always eager to help consumers in need by providing financial aid. As part of its ongoing investment diversification strategy, the Company has opened its 7th Issue of NCDs.
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, 2 years, 3 years, 5 years and 82 months, giving the effective yield of upto 11.02% for the longer duration. The lead manager to the issue is Vivro Financial Services Private Limited, registrar to the issue is kFin Technologies Limited and debenture truatee is Vistra ITCL (India) Limited. The The NCDs proposed to be issued have been rated “IND BBB-/Stable by India Ratings & Research Private Limited.
The Company primarily operates four principal lines of business, namely gold loan business, micro, small and medium enterprises loan, personal loan and microfinance.
While speaking at the event, commenting on the opening of the 7th Issue of NCDs, Mr. Manoj Raveendran Nair, Chief Executive Officer of the Company, “Gold is not just a precious commodity for most Indian households. It is integral to our lives beyond its intrinsic values. The advent of NBFCs with a primary focus on providing gold loans further popularized this lending instrument predominantly in the common man customer segment. The growth of NBFCs specializing in lending against Gold has made it one of the fastest-growing microloan segments in the country. Customers being the center of all our communications.
Our Company believes that our diversified product portfolio and customer base aligned with increasing market demand is a key component of our growth and success. With our growing network and dedicated distribution and operations teams, we seek to ensure that our credit assessment processes are robust and we provide financial facilities to creditworthy customers. I want to thank all our stakeholders for reposing their faith, showing their love for the brand, and being an integral part of our growth journey. He added.”
Commenting on the opening of the 7th Issue of NCDs, Chief Financial Officer of the Company, Mr. Thanish Dalee, “It is glad to announce that our Company has opened its 7th Issue of NCDs across India. In comparison to traditional investments, our Company offers NCDs at a competitive interest rate to provide investors with an opportunity to accumulate wealth. These NCDs are fully secured by book debts and loan receivables, cash and bank balances, other movable assets, loans and advances of the company.”
Mr. Srikant Nair, VP Business head of the Company, said, “It is our strategic decision to launch the Issue for attaining our gold loan objective. We are expanding our horizon from economic perspectives, especially in the states of Maharashtra, Andhra Pradesh, and Telangana & in the next phase, Orissa, West Bengal & Goa. The Company is optimistic and confident about the performance of this 7th NCD Issue.”
About KLM :Axiva Finvest Limited: The Company is a non-deposit taking systemically important NBFC primarily serving low and middle income individuals and businesses that have limited or no access to formal banking and finance channels.
The Company 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 our Company was changed to KLM Axiva Finvest Limited and we have obtained fresh Certificate of Registration dated March 15, 2016 bearing registration no. 09.00006 from RBI.
