KLM Axiva Finvest Ltd has come up once again with a public issue of secured, redeemable Non-Convertible Debentures (NCDs), opening on December 1, 2025. The NBFC has been a frequent issuer of NCDs in recent years and continues to attract investors with higher interest rates and multiple tenure options. The latest NCD issue offers coupon rates of up to 11.00% and targets retail, institutional, and non-institutional investors. In this article, let us review the KLM Axiva Finvest NCD November 2025 issue, covering its company profile, issue features, coupon rates, financials, risks, reasons to invest, reasons to avoid, and the final verdict.
About the Company
Incorporated in 1997, KLM Axiva Finvest Ltd is a non-deposit-taking NBFC (Middle Layer) registered with the Reserve Bank of India. The company primarily lends to low-and middle-income individuals and small businesses. Its lending operations span across four major segments:
- Gold Loans
- Micro, Small, and Medium Enterprise (MSME) Loans
- Personal Loans
- Microfinance Loans to women borrowers
Additionally, the company also offers 2-wheeler loans for women customers.
As of June 30, 2025, KLM Axiva operates through 668 branches across Kerala, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and Maharashtra.
NCD Issue Details
- Issue Open: December 1, 2025
- Issue Close: December 12, 2025
- Security Type: Secured, Redeemable NCDs
- Issue Size (Base): ₹ 50 Crores
- Issue Size (Oversubscription): ₹ 50 Crores
- Total Issue Size: ₹ 100 Crores
- Face Value / Issue Price: ₹ 1,000 per NCD
- Minimum Investment: 5 NCDs (₹ 5,000)
- Market Lot: 1 NCD
- Listing: BSE
- Basis of Allotment: First Come First Serve Basis
- Debenture Trustee: Vistra ITCL India Ltd.
Allocation Ratio
- Institutional – 10%
- Non-Institutional – 40%
- Retail – 50%
Interest Rates / Coupon Rates
The NCD issue offers 10 series with monthly, annual, and cumulative options.
| Series | Frequency | Tenor | Coupon (%) | Effective Yield (%) | Maturity Amount |
|---|---|---|---|---|---|
| 1 | Monthly | 400 Days | 9.50% | 9.92% | ₹ 1,000 |
| 2 | Cumulative | 16 Months | NA | 9.96% | ₹ 1,135 |
| 3 | Monthly | 18 Months | 9.85% | 10.31% | ₹ 1,000 |
| 4 | Monthly | 2 Years | 10.00% | 10.47% | ₹ 1,000 |
| 5 | Annual | 2 Years | 10.25% | 10.25% | ₹ 1,000 |
| 6 | Monthly | 3 Years | 10.25% | 10.75% | ₹ 1,000 |
| 7 | Annual | 3 Years | 10.50% | 10.50% | ₹ 1,000 |
| 8 | Monthly | 5 Years | 10.75% | 11.30% | ₹ 1,000 |
| 9 | Annual | 5 Years | 11.00% | 11.00% | ₹ 1,000 |
| 10 | Cumulative | 79 Months | NA | 11.10% | ₹ 2,000 |
Credit Ratings
KLM Axiva Finvest NCDs have been rated Acuité BBB (Stable), indicating a moderate degree of safety and moderate credit risk.
Objects of the Issue
According to the prospectus, the company intends to use the proceeds for:
- Onward lending and financing
- Repayment / prepayment of principal and interest on existing borrowings
- General corporate purposes
Company Financials
| Particulars | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|
| Assets (₹ Cr) | 1,933.41 | 1,938.25 | 1,719.30 |
| Revenue (₹ Cr) | 340.66 | 315.92 | 278.75 |
| Profit After Tax (₹ Cr) | 20.19 | 23.03 | 18.33 |
Notable points:
- Revenue grew 8% in FY25.
- PAT declined by 12%.
- Assets remained largely flat.
Financial source: KLM Axiva Finvest NCD Prospectus fileciteturn0file0
Why to Invest
- Attractive interest rates up to 11.00% per annum.
- Secured NCDs backed by company assets.
- Diverse tenure options suitable for short-, medium-, and long-term investors.
- First Come First Serve allotment, giving faster visibility for investors.
- The company continues to expand its branch network and loan book.
Why Not to Invest
- BBB rating indicates only moderate safety as per credit rating agency. However for me its high risk NCD.
- PAT has declined in FY25, indicating potential margin or credit pressure.
- NBFCs face higher risk during fluctuations in interest rates and economic slowdowns.
- Microfinance and MSME loans inherently carry higher default risks.
- Past RBI warnings or compliance actions can add regulatory risk.
How to Apply
Investors can apply through:
- ASBA using net banking of select banks
- UPI for applications up to ₹ 5 lakh
- Demat account via brokers like Zerodha, Groww, Angel One, and ICICI Direct
- Physical forms through designated intermediaries
Applications will be accepted only in demat mode.
Conclusion – Should You Invest in KLM Axiva Finvest NCD
December 2025?
KLM Axiva Finvest offers high returns compared to bank FDs and many corporate bonds. These NCDs are secured and come with attractive yields up to 11%. However, the BBB rating signifies high risk, and the business model exposes the company to asset-quality pressures.
Investors who understand NBFC risks, low credit rating risks and want higher returns compared to FDs may consider investing a small portion of their fixed-income allocation. Moderate to conservative investors and retirees depending on stable returns should be cautious.
My Suggestion: Suitable only for moderate-to-high risk investors seeking higher interest rates. Conservative investors may avoid.
FAQs
1. Is KLM Axiva Finvest NCD safe to invest?
It is rated BBB (Stable), meaning moderate safety. Not risk-free.
2. What is the minimum investment?
Minimum 5 NCDs = ₹ 5,000.
3. Are these NCDs secured?
Yes, backed by company assets equivalent to the outstanding NCDs.
4. How will interest be paid?
Depending on series chosen – monthly, annual, or cumulative.
5. Can NRIs apply?
No, NRIs are not allowed to invest in this NCD issue.
6. When will the NCDs be listed?
They will be listed on BSE within 6 working days of issue closure.
7. What is the risk level of this NCD?
Moderate risk due to BBB rating and NBFC business model.
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