A. K. Capital Services Limited (**AK Capital**), established in **1993**, is the flagship entity of the **A. K. Group** and a premier **SEBI Category I Merchant Banker** (registered since **1998**). The company is a dominant force in the Indian debt capital markets, providing comprehensive fee-based services to a prestigious clientele of over **250 entities**, including central and state government undertakings, scheduled commercial banks, and leading private corporates. --- ### **Integrated Group Structure & Specialized Subsidiaries** The Group operates through a synergistic model that covers the entire lifecycle of debt instruments—from origination and underwriting to distribution and asset management. | Entity Name | Relationship | Core Activity | | :--- | :--- | :--- | | **A. K. Capital Services Ltd** | Holding Company | Merchant Banking, Advisory & Debt Issue Management | | **A. K. Capital Finance Ltd** | Material Subsidiary | **Middle Layer NBFC (NBFC-ICC)**; Lending & Investment | | **A. K. Stockmart Pvt Ltd** | Material Subsidiary | Stock Broking (NSE/BSE) & Debt Product Distribution | | **A. K. Wealth Management Pvt Ltd** | Wholly Owned Sub. | Portfolio Management Services (**PMS**) | | **A. K. Alternative Asset Managers** | Step-down Sub. | Investment Manager for **Category II AIFs** (**69.99%** stake) | | **Family Home Finance Pvt Ltd** | Step-down Sub. | Housing Finance (**HFC**) via co-lending models | | **A. K. Capital Corporation Pvt Ltd** | Wholly Owned Sub. | Corporate Support Services | **Strategic Footprint:** The Group maintains a physical presence across **7 Indian cities** and is currently streamlining its international operations by initiating the strike-off of its Singapore subsidiary (**A. K. Capital (Singapore) Pte. Ltd.**) as of **November 2025**. --- ### **Core Business Segments & Market Positioning** * **Merchant Banking & Advisory:** Specializes in private placements and public issues of **NCDs**, bonds, perpetual bonds, and hybrid instruments. * **Lending & Treasury Operations:** Conducted via **A. K. Capital Finance Limited**, utilizing a hybrid model that generates interest income from investment-grade term loans and treasury income from liquid **G-Secs**. * **Distribution Powerhouse:** **A. K. Stockmart** is a leading mobilizer for debt public issues, having successfully distributed products for major issuers such as **NHAI**, **PFC**, and **Tata Capital**. * **Alternative Investments:** The Group has expanded into the **AIF** space through **A K Alternative Investments Trust II**, targeting sophisticated investors seeking debt-oriented alternative assets. * **Wealth Management:** Manages assets totaling **INR 49.67 Crores** for **53 high-net-worth clients** as of **March 2024**. --- ### **Financial Performance & Capital Management** The company maintains a stable financial profile with consistent profitability and a disciplined approach to capital allocation. #### **Consolidated Financial Summary** | Particulars (INR Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **484.10** | **519.05** | **406.81** | | **Profit Before Tax (PBT)** | **109.78** | **122.77** | **117.94** | | **Net Profit (PAT)** | **87.13** | **92.52** | **88.42** | #### **Key Standalone Ratios & Efficiency** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Net Profit Margin (%)** | **-** | **25.00%** | **26.63%** | | **Debt Equity Ratio** | **1.51** | **1.39** | **1.08** | | **Interest Coverage Ratio** | **1.85** | **2.02** | **2.40** | | **Debtors Turnover Ratio** | **21.36** | **44.09** | **23.37** | **Asset Quality:** The Group maintains exceptional credit discipline, with **A. K. Capital Finance Limited** reporting **Nil (0%) Net NPAs** as of **March 31, 2024**. --- ### **Growth Strategy & Capital Augmentation** AK Capital is aggressively positioning itself to capitalize on the deepening Indian corporate bond market, driven by SEBI’s reduction of debt face value from **INR 1,00,000** to **INR 10,000** and the inclusion of Indian bonds in global indices. * **Expansion of Borrowing Power:** Increased overall borrowing limits from **INR 2,000 Crores** to **INR 3,000 Crores**. * **Resource Mobilization:** * Authorized **Commercial Paper (CP)** issuance up to **INR 250 Crores**. * Approved **Non-Convertible Redeemable Preference Shares (NCRPS)** up to **INR 100 Crores**. * Approved fresh **NCDs and Perpetual Debt** issuance up to **INR 500 Crores**. * **Subsidiary Infusion:** In March 2026, the company committed **INR 100 Crores** to **A. K. Capital Finance Limited** via Compulsorily Convertible Preference Shares (**CCPS**) to bolster its lending capacity. * **License Optimization:** Surrendered its **Investment Adviser license** in **July 2024** to focus on core merchant banking and AIF management. --- ### **Credit Ratings & Liquidity Access** The Group benefits from high creditworthiness, allowing it to access liquidity at competitive rates. * **Commercial Paper:** Rated **CARE A1+** (Reaffirmed **Jan 2026**) for **INR 150 Crore**. * **Long Term Bank Loans:** Rated **ACUITE AA-/Stable** for **INR 823 Crore**. * **Liquidity Advantage:** One of the few merchant bankers with **TREPS (Tri-Party Repo)** membership via **CCIL**, enabling liquidity access against SLR securities. * **Debt Profile:** Consolidated **Net Debt** stood at **INR 3,173.06 Crore** as of **March 31, 2025**. --- ### **Shareholder Value & Governance** The company maintains a robust dividend track record and stable leadership. * **Dividend History:** * **FY 2025-26:** **2nd Interim Dividend** of **INR 22** per share (Feb 2026). * **FY 2024-25:** Interim dividend of **INR 12** per share. * **FY 2023-24:** Total dividend of **INR 16** per share. * **Leadership Continuity:** * **Mr. A. K. Mittal** re-appointed as **Managing Director** until **2030**. * **Mr. Rajiv Bakshi** assumed the role of **Chairman** (April 2024) and was re-appointed as **Independent Director** until **2031**. * **Governance Milestones:** Received BSE approval in **January 2026** for the reclassification of certain entities from 'Promoter Group' to 'Public'. --- ### **Risk Management & Legal Framework** AK Capital employs a system-based approach to mitigate credit, liquidity, and market risks. * **Regulatory Settlement:** In **October 2025**, the Group settled a *suo motu* application with **SEBI** regarding a **2018 DHFL NCD** public issue. The matter involved alleged unfair trade practices regarding guaranteed exits for certain applicants. The settlement was reached without admitting or denying findings, and no further enforcement action is pending. * **Taxation:** A disputed demand of **INR 1.6 Crore** (AY 2018-19) is under appeal; the company has deposited **INR 32 Lakhs** under protest and anticipates a favorable outcome based on precedents. * **Risk Mitigation:** * **Credit Risk:** Managed via **12-month and Lifetime Expected Credit Loss (ECL)** models. * **Market Risk:** Sensitivity to interest rate fluctuations and global monetary policy (e.g., JP Morgan EM Bond Index impacts). * **Regulatory Reserves:** Annually transfers **20% of net profit** to a **Special Reserve** fund per RBI/NHB mandates.