Akme Fintrade (India) Ltd IPO

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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50years

Akme Fintrade (India) Ltd IPO Details

Details

Total Shares OfferedOffer to PublicRetail Max (Shares)Pre Issue Promoters HoldingExchangeIssue size
110 LTBA36.58 L145.47 LBSE₹ 132 Cr
IPO Open DateClose DateLot SizeMin InvestmentIssue TypeListing Date
19 Jun, 2421 Jun, 24125 ₹ 14,250 Book Building26 Jun, 24

Akme Fintrade (India) Ltd IPO Dates

  • 19 Jun 2024

    Opening date

  • 21 Jun 2024

    Closing date

  • 24 Jun 2024

    Basis of
    Allotment

  • 25 Jun 2024

    Initiation of
    Refunds

  • 25 Jun 2024

    Credit of
    Shares

  • 26 Jun 2024

    Listing date

Details

SectorType
SectorFinance & Investments
Sub SectorNA
Issue TypeBook Building

Subscription Status

*Values are in Lakhs

Investor TypeSubscription TimesShares Offered*Shares Bid*
QIB11.25x522500058762125
NII130.33x1567500204294250
Retail45.78x3657500167452250
Employee5.53x5500003043750
Total39.41x11000000433552375

Subscription Status

Investor Type

QIB

NII

Retail

Employee

Total

*Values are in Lakhs

Akme Fintrade (India) Ltd Financial Status

Income Statement

Balance Sheet

Particulars (in Rs. Crores)FY23FY22FY21
Revenue from operations20.638.2820.11
EBITDA21.218.9720.76
PAT15.804.1216.70
Total Assets25.7924.6737.37
Share Capital31.6821.8221.82
Total Borrowings121.24178.20324.59
Operating Activities (Net Cash)16.384.8117.35
Investing Activities (Net Cash)0.200.200.20
Financing Activities (Net Cash)121.24178.20324.59
Net Cashflow10.321.9210.60

Particulars (in Rs. Crores)

Revenue from operations

EBITDA

PAT

Total Assets

Share Capital

Total Borrowings

Operating Activities (Net Cash)

Investing Activities (Net Cash)

Financing Activities (Net Cash)

Net Cashflow

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).

Peer Comparison:

  • Akme Fintrade India Ltd
  • MAS Financial Services Ltd
  • Shriram Finance Ltd
  • Cholamandalam Investment & Finance Company Ltd
  • Arman Financial Services Ltd
  • CSL Finance Ltd

Akme Fintrade (India) Ltd IPO Key Points

Strengths

  • Proven execution capabilities with a strong rural focus.
  • Well established Vehicle Finance, small businesses lending business.
  • Stable and experienced management team.
  • Customer centric approach and deep understanding of target customers.
  • Access to Diversified Sources of Capital and Effective Asset Liability Management.

Risk

  • The company has experienced a decline in revenue in Fiscal Year 2022 and may consider to experience such decline in the future.
  • The Company has higher levels of NPAs as compared to some of its peer companies and hence the company's business may be adversely affected if the company is unable to provide for such higher levels of NPAs.
  • The Company did not comply with certain RBI norms/guidelines in the past. Non-compliance with the RBI's norms/guidelines and violations of regulations prescribed by the RBI, could expose it to certain penalties and restrictions.

Strategy

  • Increase focus on Digitisation and expanding product portfolio.
  • Deepen, strengthen, and expand geographical Presence.
  • Continue to focus on small business owners and self-employed individuals.
  • Enhance its Brand Recall to Attract New Customers.
  • Leverage its Network, Domain Expertise and Data to Enhance Product Offering.
  • Proven execution capabilities with a strong rural focus.
  • Well established Vehicle Finance, small businesses lending business.
  • Stable and experienced management team.
  • Customer centric approach and deep understanding of target customers.
  • Access to Diversified Sources of Capital and Effective Asset Liability Management.

How To Apply for Akme Fintrade (India) Ltd Online?

Step 1:

Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.

Step 2:

From the list of open IPOs, select the IPO you want to invest.

Step 3:

Go through the IPO details like lot size, price band, about the company, etc.

Step 4:

Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.

Step 5:

Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.

Get your FAQs right

Akme Fintrade (India) Ltd's IPO offers shares for up to ₹ 0 L It begins on Jun 19, 2024 and ends on Jun 21, 2024.

The price of Akme Fintrade (India) Ltd IPO ranges between ₹114 to ₹120 per share.

The Akme Fintrade (India) Ltd IPO opens on Jun 19, 2024 and closes on Jun 21, 2024.

The allotment for the Akme Fintrade (India) Ltd IPO will be finalised on Jun 24, 2024. The shares will be listed on BSE and NSE on Jun 26, 2024.

The minimum lot size for Akme Fintrade (India) Ltd IPO is 125 shares, priced between ₹114 to ₹120 per share.

The GMP (Grey Market Premium) of Akme Fintrade (India) Ltd IPO fluctuates based on market demand and sentiment.

To check the allotment status of Akme Fintrade (India) Ltd IPO, visit the registrar's website, select the IPO, enter your PAN Card number, Application Number, or DP Client ID, and click 'search.'

The Akme Fintrade (India) Ltd IPO is getting listed on the BSE and NSE. Bidding opens on Jun 19, 2024, and closes on Jun 21, 2024. The allotment is finalised on Jun 24, 2024.

To apply for the Akme Fintrade (India) Ltd IPO, download the BlinkX app, complete KYC, select the IPO, enter bid details, and submit. Verify UPI payment for shares allotment.