KLM Axiva Finvest launches ₹250 crore secured redeemable NCD issue
3 min read . Updated: 13 Feb 2023, 02:16 PM IST
PremiumThe issue will open on February 20, and close on March 3. The NCDs are proposed to be listed on BSE Limited and the allotment will be on first-cum-first-serve basis
KLM Axiva Finvest has announced its eighth series of public issue of secured, redeemable, non-convertible debentures of face value of ₹1,000 each at par, aggregating up to ₹125 crore, referred to as the “base issue", with an option to retain over-subscription of an additional ₹125 crore, aggregating up to ₹250 crore.
The minimum application amount for the issue is five NCDs i.e. Rs. 5,000 (across all options of NCDs). The issue will open on February 20, and close on March 3. The NCDs are proposed to be listed on BSE Limited and the allotment will be on first-cum-first-serve basis.
The company proposes to utilise the funds which are being raised through the Issue, after deducting the Issue related expense, 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 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 upto 11.02% for the longer duration. The NCDs proposed to be issued under this Issue have been rated “IND BBB-/Stable", by India Ratings & Research Private Limited.
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.
Manoj Raveendran Nair, Chief Executive Officer of KLM Axiva Finvest Limited said, “we are glad to announce the 8th NCD Issue of the Company. The NCDs proposed to be issued are secured by way of 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."
Who can apply?
The following categories of persons are eligible to apply in this Issue:
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 and regional rural banks, and multilateral and bilateral development financial 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 funds, 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 IRDAI; National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India and 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. However, one should note that applications aggregating to a value not more than ₹ 5 lakhs. Further it can be made under the UPI Mechanism.