KLM Axiva Finvest Limited is a non-deposit taking and non- systemically important non-banking finance company ("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 and subsequently, its name was changed to KLM Axiva Finvest Limited. Company operates 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 and (iv) Micro-finance loan to women customers. As on June 30, 2019, the company operates through 125 branches across three states Kerala, Karnataka and Tamil Nadu managed by corporate office located at Kochi. Company's 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. To finance company's onward lending, financing, repayment of interest and principal of existing loans and general corpus fund needs, KLM is coming out with its second debt offer of Rs. 100 cr. via secured, redeemable non convertible debentures having a face value of Rs. 1000 per NCD. Minimum application is to be made for 5 NCDs (i.e. Rs. 5000) and in multiple of 1 NCD (Rs. 1000) thereon, thereafter. These instruments have tenure of 400 days, 2 years, 3 years , 5 years, 45 months and 75 months. It offers coupon rates ranging from 11.00% to 12.00% and the interest payment mode available for Monthly, Annually or Cumulative, as per the choice of investors. As per financial performance, for last three fiscals, KLM has posted total income/net profits of Rs. 10.82 cr. / Rs. 1.64 cr. (FY16), Rs. 23.94 cr. / Rs. 2.13 cr. (FY17), Rs. 42.73 cr. / Rs. 5.69cr. (FY18) and Rs. 68.36 cr. / Rs. 5.98 cr. Its debt-equity ratio will stand enhanced from 4.84 at present to 6.64 post issue. As of March 31, 2017, March 31, 2018, and March 31, 2019 KLM's AUM was Rs. 91.36 cr., Rs. 194.23 cr. and Rs. 373.83 cr. respectively. Its AUM increased at a CAGR of 102.29% from Rs. 91.36 cr. as of March 31, 2017 to Rs. 373.83 cr. as on 31.03.19. Its net NPAs stood at 3.78% and 4.47% for FY17 and FY19 respectively. The issue is rated CARE BB+ (outlook stable) by CARE Ratings Limited. This rating indicates that instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk. As coupon rates are attractive, but there is risk also, so investors with risk capacity only should apply this with 'NEUTRAL' rating. Tenure 400 Days 400 Days 2 Years 2 Years 3 Years 3 Years 5 Years 5 Years 45 Months 75 Months Nature Options I II III IV V VI VII VIII IX X Frequency of Interest Payment Monthly Cumulative Monthly Yearly Monthly Yearly Monthly Yearly Cumulative Cumulative Coupon Rate (% per annum) 11.00% NA 11.25% 11.50% 11.50% 11.75% 11.75% 12.00% NA NA Coupon Type Fixed Redemption Amount (Rs / NCD) for Debenture Holders* Rs 1,000 Rs 1,123 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,500 Rs 2,000 Effective Yield (Per annum) 11.57% 11.17% 11.85% 11.50% 12.13% 11.75% 12.40% 12.00% 11.42% 11.73% Deemed Date Of Allotment The Date on which the Board of the Debenture Committee approves the allotment of NCDs. All benefits relating to the NCDs including interest on the NCDs shall be available to the investors from the Deemed date of allotment. The actual Allotment of NCDs may take place on a date other than the Deemed Date of Allotment.
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