KOCHI: KLM Axiva Finvest Ltd (KLM Axiva) is gearing up for its initial public offering (IPO), according to a top official of the company.
Talking to businessbenchmark.news, Thanish Dalee, the chief financial officer (CFO) of KLM Axiva, headquartered in Kochi, said the size of the IPO could be up to Rs300 crore.
“We are currently in talks with a few merchant bankers and once the names of the merchant bankers are finalised, the IPO process is expected to gain pace,” Dalee told this portal.
10 NCD issues
The company has concluded 10 public issues for non-convertible debentures (NCDs), the latest one being the one closed a few days ago, and currently the total outstanding of NCDs stands at around Rs600 crore.
KLM Axiva, which already enjoys a comfortable capital to risk weighted ratio (CRAR) or capital adequacy ratio of around 25 per cent, has a Tier 1 capital ratio of close to 16 per cent.
Loan book expansion
Dalee hopes to expand the loan book by about Rs2,000 crore once the company successfully raises Rs300 crore fresh capital through the IPO.
The company has a strong branch network of about 700 outlets with ten in Maharashtra. KLM Axiva is likely to go for a stronger physical presence outside Kerala soon.
“Market has good potential for growth with a large young population, and we are sure our asset base too can grow with the support of the fresh capital we intend to raise from the market,” Dalee added.
Rs1,700 cr AUM
As of June end, KLM Axiva has a total assets under management (AUM) to the tune of Rs1,700 crore. The company that earned a net profit of Rs23 crore for the 2023-24 (FY24) full year and Rs4.5 crore for the first quarter ended June 30, 2024, sits on a decent net worth of Rs259.18 crore and a paid up capital of Rs205.40 crore.
KLM Axiva hopes to bring down the current leverage ratio of 6.3 times with the backing of fresh capital to be raised through the IPO in the works.
The Kochi-headquartered NBFC has a bouquet of loan products that include gold loan, MSME loans, microfinance loans and vehicle loans.
A financial analyst told this portal that more NBFCs with good financials will come forward to tap the capital market in the coming months given the tight bank funding market.
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