Akme Fintrade (India) Ltd IPO

About Akme Fintrade (India) Ltd

Akme Fintrade (India) Limited was originally incorporated as `Akme Fintrade (India) Private Limited' as a private limited company under the provisions of the Companies Act, 1956, pursuant to a certificate of incorporation dated February 5, 1996 issued by the Registrar of Companies, Rajasthan, Jaipur. Thereafter, the Company was converted to a public limited company, pursuant to a special resolution passed by its shareholders on January 5, 1997 and the name of the Company was changed to `Akme Fintrade (India) Limited' and a fresh certificate of incorporation dated March 11, 1997 was issued to the Company by the Registrar of Companies, Rajasthan, Jaipur.

NBFCs' Assets Under Management is expected to grow in single digits (between 7-8%) in FY24 on the back of NBFCs continued focus on extending credit facilities to that segment of consumers where the penetration of bank is relatively low, the demand for credit from the retail segment will also continue to flow to NBFCs. Continuous investments in technology infrastructure and ease of access to internet will fuel the growth of NBFC in upcoming years. There would be steady demand from retail segments specially from Housing loans and Vehicle loans segments which will continue growth momentum of NBFC sector. In the recent past, many NBFCs have improved in terms of liquidity, capital and provisioning which along with improving economic activity would enable NBFCs to comfortably position itself to capitalize the growth opportunities in the years to come, however there will be competition from banks. On Asset Quality front the recent change in NPA recognition norms by RBI to a daily due-date basis instead of the month-end will have implications. However, the increase in GNPAs because of the revised income recognition, asset classification and provisioning norms will be largely an accounting impact because given the improving economy, the credit profiles of borrowers are not expected to deteriorate. Consequently, ultimate credit losses are not expected to change significantly. NBFC Presence in Vehicle Financing: As on March 2023, the total outstanding vehicle loan portfolio of NBFC segment was approximately INR 7.4 Lakh Crore, with nearly 75% of them being commercial vehicle loans. NBFC share in total two-wheeler loan portfolio is nearly 65% while its share in passenger vehicle is close to 25%. In CV financing segment, the market share of NBFC is closer to 62% (including new and used CV financing).

Akme Fintrade (India) Limited is a non-banking finance company (NBFC) incorporated in the year 1996 registered with the Reserve Bank of India as a Non-systemically important non-deposit taking company with over two decades of lending experience in rural and semi-urban geographies in India. The Company is primarily engaged in rural and semi-urban centric lending solutions to look after the needs and aspirations of rural and semi-urban populace. Its portfolio includes Vehicle Finance and Business Finance Products to small business owners. The Company has a long history of serving rural and semi-urban markets with high growth potential and has maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and low cost expansion into underpenetrated areas. Therefore, the company strategically focuses on clients in the rural and semi-urban sector.

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