The ₹100-crore NCD issue of KLM Axiva Finvest, a fast-growing NBFC in Kerala, which opened on September 26, has been receiving encouraging response from investors. The issue is set to close on October 26.
Considering the response, the company may opt for early closure. Through the issue of NCDs of face value ₹1,000 each, the company is targeting to collect ₹100 crore, said Shibu Thekkumpuram, Chairman, KLM Group. With monthly and yearly interest choices, the NCD offers nine investment options. The investment is expected to double in 72 months. Interest rates vary from 11.25 per cent to 12.25 per cent. To make it attractive to small investors, minimum investment is fixed at ₹5,000.
Shibu said the group is eyeing an IPO within two years, considering the growth potential in the gold loan business as well as to expand the company’s micro-finance operations across the country. The company plans to earmark ₹1,000 crore for micro-finance, for which it will float an NBFC with micro-finance registration. Plans are also afoot to open 300 branches.
Josekutty Xavier, Director, KLM, said in the next five years, the company is targeting to notch up gold loan business worth ₹5,000 crore and open 1,000 branches. The company, which is in its 25th year of operations, has planned year-long celebrations.