IKF Finance Bonds: High-Yield and Secure Investment Opportunities
For investors seeking medium-term fixed-income opportunities, IKF Finance Limited offers a compelling option. Its senior secured, listed bonds provide a YTM of 9.75% with a 28-month tenure. Backed by a well-capitalized NBFC with a strong track record in vehicle financing, these bonds combine security, predictable returns, and institutional credibility.
Company Overview
IKF Finance Limited, incorporated in 1991 as Indra Keela Financiers Private Limited, converted into a public limited company in 1994. It specializes in vehicle financing, primarily catering to Small Road Transport Operators (SRTOs) for commercial vehicle acquisition. Over the years, the company has grown its AUM from ₹3,774 crore in FY24 to ₹4,513.88 crore in FY25, reflecting steady expansion.
The company is registered with the RBI as a non-deposit taking NBFC, classified as an asset financing company. It has partnered with banks and industry leaders to expand its footprint and improve service delivery.
Leadership and Management
IKF Finance is led by a seasoned management team:
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V.G.K. Prasad (Founder & Chairman):
Over 30 years in vehicle finance, instrumental in institutionalizing auto financing in Andhra Pradesh. Former President and Secretary General of the Federation of Indian Hire Purchase Associations (FIHPA). -
Vasumathi Devi Koganti (Managing Director):
9 years of IT/Telecom experience in the US and 8 years in NBFC operations. Key driver for expanding operations to Western & Central India and upgrading IT infrastructure for process automation. -
Rama Raju (CEO):
Ex-CEO of AML Finance, ex-Zonal Head at SREI, with experience at Kotak Mahindra Bank and Tata Finance. Leads professionalization and system improvements across operations.
Financial Highlights – FY25
IKF Finance maintains a healthy financial position with strong growth and disciplined operations:
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Assets Under Management (AUM): ₹4,513.88 crore
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Net Worth: ₹988.51 crore
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Total Assets: ₹5,012.01 crore
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Revenue: ₹660.13 crore
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Profit After Tax (PAT): ₹107.95 crore
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PAT Margin: 16.35%
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Return on Equity (ROE): 11.55%
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Net NPA: 1.50%
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Capital Adequacy Ratio (CRAR): 20.85%
These figures indicate prudent lending practices and strong capitalization, providing confidence to investors in the bond offerings.
IKF Finance Bonds: Details and Features
The company offers senior secured listed bonds with attractive yields:
| ISIN | Rating | YTM | Tenure (Months) | Minimum Investment |
|---|---|---|---|---|
| INE859C07212 | CARE A+ | 9.75% | 28 | ₹84,962 |
Key Features:
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Senior Secured: Backed by company assets for additional protection.
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Medium-Term Tenure: 28 months, suitable for investors looking for near-term returns.
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Listed on Exchange: Provides transparency and tradability.
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Competitive Yield: 9.75% YTM, higher than many traditional fixed-income instruments.
Institutional Support
IKF Finance is supported by prominent banks and financial institutions, which enhances credibility:
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Banks: Axis Bank, Central Bank of India, Indian Overseas Bank, HDFC Bank, IDFC Bank, Piramal Capital Housing Finance, Mudra Finance Limited
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NBFCs/FIs: Vistra Itcl (India) Limited, Tata Capital Financial Services Limited, Vupputuri Gopala Kishan Prasad
This diverse institutional backing reduces risk and increases investor confidence.
Why Invest in IKF Finance Bonds?
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High-Yield Returns: 9.75% YTM over 28 months.
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Asset-Backed Security: Senior secured bonds protect principal.
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Strong Management & Legacy: Leadership with decades of experience in vehicle finance.
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Healthy Financials: Low NPAs and strong capital adequacy.
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Medium-Term Horizon: Ideal for investors seeking predictable, short-to-medium term returns.
High-Yield Returns: 9.75% YTM over 28 months.
Asset-Backed Security: Senior secured bonds protect principal.
Strong Management & Legacy: Leadership with decades of experience in vehicle finance.
Healthy Financials: Low NPAs and strong capital adequacy.
Medium-Term Horizon: Ideal for investors seeking predictable, short-to-medium term returns.
Conclusion
IKF Finance bonds offer an attractive investment opportunity combining security, strong financials, and high yields. Backed by decades of experience in vehicle financing and supported by reputable lenders, these bonds provide investors with a safe, high-return fixed-income instrument suitable for portfolio diversification.
Invest in IKF Finance Bonds: Secure, Profitable, and Trusted.
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