Penny stock surges 10% despite sell-off in Indian stock market; here's why

Penny stock Akme Fintrade (India), trading under ₹10, jumped as much as 10 per cent in intra-day deals on Friday, August 22, despite a broader sell-off in the Indian stock market. The surge came after the company announced fundraising plans via issuance of Non-Convertible Debentures (NCDs) through a private placement to eligible investors.

Indian stock market benchmarks suffered sharp losses in intraday trade today due to profit booking across segments amid mixed global cues. This reflected caution among market participants ahead of US Fed Chair Jerome Powell's speech at theJackson Hole symposium.

The Sensex crashed 600 points, or 0.73 per cent, to hit an intraday low of 81,401, while the Nifty 50 dropped 0.74 per cent to fall to the day's low of 24,898.

Akme Fintrade revealed that it will issue listed, rated, senior, secured, transferable, redeemable, non-convertible debentures totalling ₹50 crore in one or more tranches or series. Each NCD will have a face value of ₹10,000, aggregating to ₹50,00,00,000. The NCDs are proposed to be listed on NSE Limited.

Investors were informed that the tenure of the instrument is up to 24 months from the deemed date of allotment, August 22, 2025, with maturity scheduled for August 22, 2027. The debentures will carry a coupon/interest rate of 12 per cent, payable monthly, while the principal will be repaid at maturity in line with the Debenture Trust Deed executed between the issuer and the debenture trustee.

The company will maintain a minimum security cover of 1.20x over loan receivables throughout the tenure of the NCDs. In case of default, including payment delays exceeding three months, Akme Fintrade may be liable to pay additional interest at 2 per cent per annum above the applicable interest rate. Additional penalties have also been outlined for breaches of covenants, delays in security creation, or delays in executing the Debenture Trust Deed. Redemption of the debentures will be carried out as per the terms specified in the trust deed.

Akme Fintrade stock surged to a day’s high of ₹7.55, though it remains nearly 42 per cent below its 52-week high of ₹12.97, recorded in August 2024. The share had previously touched a 52-week low of ₹6.38 in March 2025. Over the last year, Akme Fintrade has lost around 39 per cent of its value.

Looking at monthly performance, Akme Fintrade stock rose roughly 3 per cent in August, following an 8.4 per cent fall in July and a 4.5 per cent decline in June. Prior to that, it had gained 8.5 per cent in May and 13 per cent in April. The first three months of 2025 were negative for the small-cap stock, with a drop of 4 per cent in March, 18.7 per cent in February, and 1.6 per cent in January.

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