AKME Fintrade Bonds Explained: Price, ISIN, Yield (YTM), Rating & Key Risks

Introduction

Corporate bonds issued by non-banking financial companies (NBFCs) form a significant part of India’s debt market. Among these, bonds issued by AKME Fintrade India Limited are listed instruments that attract attention due to their defined coupon structure, credit rating, and fixed maturity profile.

Search queries such as akme fintrade bond, akme fintrade bond review, and akme fintrade share price often indicate an interest in understanding how these instruments work, how yields are calculated, and what risks are involved.

This article explains AKME Fintrade bonds from a structural and informational perspective. It does not evaluate suitability or suggest any investment decision.

Overview of AKME Fintrade Bonds

AKME Fintrade bonds are listed, secured non-convertible debentures (NCDs) issued through private placement. These bonds carry a fixed coupon rate and are designed to pay interest on a monthly basis until maturity.

Key characteristics include:

• Identifiable ISIN

• Fixed coupon structure

• Defined maturity date

• Independent credit rating

• Senior ranking in the issuer’s debt structure

Such features allow the bond to be analysed using standard fixed-income evaluation frameworks.

Bond ISIN and Listing Details

The bond ISIN INE916Y07032 uniquely identifies this AKME Fintrade bond in the depository and exchange systems. ISINs are essential for:

• Tracking bond price and trading activity

• Accessing disclosures and rating updates

• Settlement and record-keeping

Being a listed bond, price movements may occur based on demand, liquidity, interest-rate expectations, and issuer-specific developments. Listing does not imply liquidity at all times, as trading volumes in corporate bonds can vary.

Coupon Rate, Price and Yield to Maturity (YTM)

Coupon Rate

The bond carries a fixed coupon rate of 12.00 percent, with interest paid monthly. A fixed coupon means the interest rate does not change during the bond’s tenure, subject to contractual terms.

Bond Price

The bond price in the secondary market may differ from its face value. Price fluctuations can occur due to:

• Changes in market interest rates

• Liquidity conditions

• Credit perception of the issuer

• Time remaining to maturity

• Yield to Maturity (YTM)

Yield to maturity (YTM) represents the annualised return implied by the bond’s current market price, coupon payments, and remaining tenure, assuming the bond is held until maturity and all payments occur as scheduled.

YTM is a calculated indicator, not a promised outcome, and can change with market price movements.

Bond Maturity Date and Repayment Structure

The bond maturity date is 22 August 2027. Until maturity, the bond pays monthly interest. The principal is scheduled to be repaid at maturity, subject to the terms outlined in the offer document.

Maturity structure influences:

• Interest rate sensitivity

• Reinvestment considerations

• Duration exposure

Short-to-medium-tenure bonds typically exhibit different risk dynamics compared to long-dated instruments.

Bond Issuer Background: AKME Fintrade India Limited

AKME Fintrade India Limited is a non-deposit taking NBFC, incorporated in 1996 and headquartered in Udaipur, Rajasthan. The company operates primarily in:

• Two-wheeler and four-wheeler financing

• Commercial vehicle loans

• Loans against property (LAP)

• SME-focused lending

The company has a geographical presence across Rajasthan, Madhya Pradesh, Maharashtra, and Gujarat, with a significant portion of its portfolio concentrated in Rajasthan.

AKME Fintrade underwent changes in management and capital structure in recent years, including equity infusion through an IPO, which altered its net worth and leverage profile.

Credit Rating and Rating Rationale

The bond is rated BBB+ with a Stable outlook by Acuite Ratings & Research, as per the rating communication dated 05 August 2025.

What the Rating Reflects

• According to the rating rationale, the assessment considers:

• Capital infusion and improvement in net worth

• Reduction in gearing levels

• Improvement in collection efficiency

• Professionalisation of management

• Asset quality trends

Limitations of Credit Ratings

Credit ratings are opinions, not assurances. They are based on available information at a point in time and are subject to revision due to changes in financial performance, asset quality, or operating conditions.

Bond Industry Context

AKME Fintrade operates within the NBFC lending sector, which is influenced by:

• Borrower credit behaviour

• Regulatory norms issued by RBI

• Competitive lending environment

• Macroeconomic conditions affecting repayment capacity

NBFC bonds are exposed to both issuer-specific risks and sector-wide developments, particularly in credit cycles.

Key Risks and Limitations

AKME Fintrade bonds carry several risks that are common to corporate debt instruments:

• Credit Risk: Dependence on the issuer’s ability to service obligations

• Liquidity Risk: Limited secondary market trading volumes

• Interest Rate Risk: Bond prices may fluctuate with rate movements

• Geographical Concentration Risk: Portfolio concentration in specific regions

• Regulatory Risk: Changes in NBFC regulations affecting operations

These risks exist irrespective of coupon rate, rating, or listing status.

How Investors Typically Evaluate Such Bonds

From an educational perspective, bonds like this are commonly evaluated by reviewing:

• Issuer background and business model

• Bond structure and tenure

• Coupon and cash-flow profile

• Credit rating rationale

• Industry and regulatory environment

Such evaluation frameworks aim to understand risk and structure, not to predict outcomes.

Conclusion

AKME Fintrade bonds are listed, secured NCDs with a fixed monthly coupon, defined maturity in August 2027, and a BBB+ credit rating. Understanding elements such as bond ISIN, coupon rate, yield to maturity, maturity date, issuer background, and credit profile provides clarity on how the instrument is structured within India’s corporate bond market.

Like all corporate bonds, these instruments remain subject to issuer-specific, market-linked, and regulatory risks.

Disclaimer

This article is intended solely for educational and informational purposes. The bond details, issuer information, ratings, and structural features discussed herein are based on publicly available disclosures and should not be construed as investment advice or personal recommendations.

Ultra does not provide personalized investment advice through this content. Readers are advised to independently review all offer documents, rating rationales, and risk disclosures, and to seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all relevant documents carefully before investing.