Akara Capital Bonds

Incorporated in 2016, Akara Capital Advisors Private Limited (ACAPL) is an RBI-registered NBFC headquartered in Delhi. ACAPL has issued secured, redeemable Non-Convertible Debentures (NCDs) offering 13.75% p.a. returns (YTM). The minimum investment of the bond is Rs 10,000, with the coupon rate (fixed) of 12.00% per annum, payable monthly. The credit rating of Akara Capital Bonds is BBB (Outlook: Stable) by ICRA Analytics Limited. 

Investors can invest in Akara Capital Bonds through the Paisabazaar app by following the steps below:

Step 1: Log in to the Paisabazaar App

Step 2: Click on the ‘Bond’ section under ‘Investment Products’

Step 3: Complete your KYC Verification by verifying your email address. 

Step 4: Fill in your bank details, personal information and lastly e-sign.

Step 5: Link your demat account

Step 6: Start investing in Akara Capital Bonds and earn returns of 13.5% p.a.

• Investors can earn higher returns (YTM) of up to 13.5% p.a. by investing in Akara Capital Bonds.
• These bonds are senior secured NCDs, i.e., backed by receivables and bank balances with 1.10x security cover.
• It is listed on the Bombay Stock Exchange (BSE), i.e, liquidity for investors to sell in the market.
• The bond falls under an investment-grade credit rating, indicating a moderate degree of safety and moderate credit risk.
• The bond offers a monthly interest payout option, offering investors a steady stream of passive income.

Akara Capital Bonds have been assigned a credit rating of BBB (Stable) by ICRA Analytics Limited. The BBB rating indicates ‘moderate degree of safety for timely repayment of principal and interest’ and has moderate credit risk. ICRA has taken the credit profile of ACAPL and its group company EQX Analytics Private Limited (EQXAPL) into consideration for assigning a credit rating. The ‘Stable’ outlook reflects the credit agency’s expectation that the Group may expand its operations while maintaining a prudent capitalisation profile.

Credit Strengths

According to the ICRA report, the NBFC maintains an adequate capitalisation profile with a standalone net worth of Rs. 702 crore and consolidated net worth of Rs. 715 crore. It is supported by the track record of regular capital infusions. The credit rating agency expects the gearing to increase in line with the business plans. 

Credit Challenges

Increasing credit costs due to asset quality pressure, despite strong Asset Under Management (AUM) growth, have resulted in a decline in the RoMA (Return on Managed Assets) to 1.2% in FY2025 from 1.4% in FY2024. With respect to disbursements, ICRA mentions that the credit costs stood at 8.6% in Q1 FY2026 vis-à-vis 9.9% in FY2025 and 8.0% in FY2024, which reflects the riskiness in the ACAPL’s portfolio.

• Akara Capital Advisors Private Limited is an RBI-registered NBFC.
• ACAPL bonds have a moderate degree of safety and moderate credit risk.
• These bonds are senior secured NCDs, i.e., investors have a legal claim on the company’s underlying assets, providing a layer of security.
• Being a listed bond, investors can buy/sell in the secondary market.

Investors can redeem Akara Capital Bonds through the exchange (BSE) or by contacting their broker. 

Akara Capital Advisors Private Limited is an NBFC registered with the RBI and is a 100% subsidiary of MTPL (Singapore-based neo-banking start-up). EQX Analytics Private Limited (EQXAPL) is another wholly-owned subsidiary of the group, which houses the technology platform StashFin and sources leads. 

ACAPL primarily offers unsecured personal loans through ‘Stashfin’ to salaried individuals. It is engaged in lending customised personal loan products ranging from Rs.0.01 lakhs to Rs.10 lakhs.

Key Financial Indicators

All ratios as per ICRA calculations; Amount in Rs. crore

Financial Covenants (for the period ended 31 December 2025)

Brief Details of the Management of the Company

Risk Factors

General Risks

• Credit Risk: The bond is rated BBB by ICRA.  There is a possibility that the Rating Agent may downgrade the rating in the event of deterioration in the financial health of the issuer.
• Liquidity Risk: The product is listed on BSE but might not be actively traded. Investors may have to hold their securities until redemption to realise any value.
• Interest Rate Risk: There is an inverse relationship between interest rates and the price of the bond. The price of the bond may fall if the market interest rate rises.

Specific Risks

• The majority of the issuer’s loans are unsecured. The clients of these unsecured loans are of the high-risk category. As on 31st March 2025, the Gross Non-Performing Asset (GNPA) was Rs 74.78 crores on a gross portfolio of Rs 1727.72 crores (including managed/securitized portfolio). 
• The issuer of the bond cannot assure that it will be able to effectively control and reduce the level of the NPAs of its client loans. 
• The business operates through a large number of semi-urban and rural branches. It is exposed to operational risks, including fraud.