On World MSME Day, Arka Fincap Limited announced a 0% processing fee on top-up loans for a short time, till July 27, 2024. The purpose of this unique offer is to give MSMEs extra financial support so they may grow their enterprises without having to pay more. An NBFC and subsidiary of Kirloskar Oil Engines Limited (KOEL) is Arka Fincap. Navin Saini, Business Head – Retail SME & MSME, Arka Fincap Limited, said, “At Arka, we deeply value our customers and are committed to supporting their growth and success. On World MSME Day, we are pleased to offer a 0% processing fee on top-up loans for our existing customers. This special offer is our way of expressing gratitude for their trust and loyalty, helping them access the additional funds they need to expand their businesses without incurring extra costs. We believe in empowering our nation’s MSMEs to achieve greater heights, and this is just one of the many ways we show our dedication to their financial well-being.”

Arka Fincap Limited, an NBFC and subsidiary of Kirloskar Oil Engines Limited (KOEL), has been given a Certificate of Registration to function as a Corporate Agent (composite) by India’s Insurance Regulatory and Development Authority (IRDAI). This registration allows Arka to expand into insurance distribution, adding to its existing financial solutions portfolio to meet consumers’ diverse needs. With this announcement, Arka Fincap will diversify its product portfolio, allowing it to enter a new area and capitalise on growing prospects. With ‘Customer centric, every time’ as one of its core beliefs, the organisation will enable its clients to achieve business objectives while shielding them from uncertainty.

Arka Fincap, a non-bank lender promoted by the Kirloskar Group, on Tuesday said it is aiming to add another Rs 800 crore to its Assets Under Management (AUM) by March 2024. The shadow bank, which announced its plans to raise up to Rs 300 crore from a non-convertible debentures issue, will be focusing on lending to small businesses going forward, according to a statement. Its AUM currently stands at Rs 4,200 crore and the NBFC is aiming to close FY24 with an AUM of Rs 5,000 crore, the statement said. Further, it said the company plans to open 10 more branches by March to take its overall network to 40 branches, and will be adding about 175 employees to take its overall staff size to 500 by March 2024. Kirloskar group had infused Rs 1,000 crore into the NBFC commenced operations in 2019. ​​​​​​​ It is offering coupons of up to 10 per cent on the NCDs, the statement said, adding that the NCDs come in three tenors of 24 months, 36 months and 60 months.

Arka Fincap announced the public issue of non-convertible debentures (NCDs) worth Rs 300 crore on December 5. NCDs will have a face value of Rs 1,000 each. The base issue size for the offer is Rs 150 crore. There is also a green shoe option of Rs 150 crore if the issue is oversubscribed. Tranche I issue will open on December 7 and will close on December 20. JM Financials and Nuvama Wealth Management are the lead managers of the issue. CRISIL gave an AA-/Postitive rating for the NCDs. The NCD’s coupon rates are between 9 and 10 percent per annum with quarterly and annual interest options. The company in a press release said that the NCDs will have three tenors: 2 years, 3 years and 5 years with effective yield in these tenors at 9.29 percent, 9.62 percent and 9.99 percent, respectively. The company said the NCDs will be listed on BSE. Arka Fincap added that 75 percent of the funds will be utilised for “onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes”. “We believe that we have a well-diversified funding profile that underpins our strong liquidity management system, our strong credit rating and brand equity. The public issue of NCDs is in line with our strategy of liability diversification,” Vimal Bhandari CEO of Arka Fincap said.

Kirloskar Capital, a wholly-owned subsidiary of Kirloskar Oil Engines and part of Kirloskar Group, has undergone a repositioning of its brand and changed its name to Arka Fincap Limited. Atul Kirloskar, Executive Chairman, Kirloskar Group, said the NBFC industry is at the cusp of new beginnings and holds tremendous untapped opportunities. “With the government stimulus measures and reforms, integration of technology and greater corporate governance, Arka Fincap is poised for growth based on its patient capital approach.”