Akme Fintrade India Limited is coming up with an IPO consisting of a fresh issue of 1,10,00,000 shares worth INR 132 crores. The company aims to augment its capital base to meet future capital requirements and growth opportunities.
Akme Fintrade India IPO – Important Dates
| Akme Fintrade India Limited IPO Date | June 19, 2024 to June 21, 2024 |
| Akme Fintrade India Limited IPO Listing Date | June 26, 2024 |
| Akme Fintrade India Limited IPO Price | INR 114-120 per share |
| Akme Fintrade India Limited IPO Lot Size | 125 shares |
| Akme Fintrade India Limited IPO Total Issue Size | INR 132 crores |
| Akme Fintrade India Limited IPO Basis of Allotment | June 24, 2024 |
| Akme Fintrade India Limited IPO Initiation of Refunds | June 25, 2024 |
| Akme Fintrade India Limited IPO Credit of Shares to Demat | June 25, 2024 |
| Akme Fintrade India Limited IPO Issue Type | Book Built Issue IPO |
| Akme Fintrade India Limited IPO Listing At | BSE NSE |
Akme Fintrade India Limited IPO – Company Profile
Akme Fintrade India Limited, an NBFC since 1996, offers vehicle and business finance in rural and semi-urban India. It leverages over two decades of experience to achieve high growth, financial performance, and operational efficiency in underpenetrated areas.
Currently in development, www.aasaanloans.com is undergoing User Acceptance Testing for Two-wheeler finance. Future phases will introduce loans against property, commercial vehicle financing, and secured business loans, ensuring robust credit standards before a broader rollout.
They launched aasaanloans.com to identify low-risk, high-potential businesses and provide financing access. Operating in Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat, with offices in Udaipur and Mumbai, they serve over 200,000 customers through 12 branches and 25 points of presence.
Akme Fintrade India Ltd IPO Fundamental Analysis
Akme Fintrade India Limited Technologies’ financial analysis reveals a mixed performance. Revenue shows modest annual growth with improved profitability, rising equity, EPS, RoNW, and increased total assets, indicating potential business growth.
- Revenue Trend: The revenue increased from ₹6,744.13 lakhs in March 2022 to ₹6,951.37 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 5,340.49 lakhs, falling short of last year’s benchmark.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹412.07 lakhs in March 2022 to ₹1,224.66 lakhs by December 2023. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹1.68 in March 2022 to ₹3.87 by December 2023, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 3.09% to 5.81%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Akme Fintrade India IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 6,744.13 | 6,951.37 | 5,340.49 |
| Equity (₹ in lakhs) | 13,684.44 | 20,478.11 | 21,701.25 |
| Expenses (₹ in lakhs) | 5,991.30 | 4,952.11 | 3,828.52 |
| Profit and Loss After Tax (₹ in lakhs) | 412.07 | 1,580.27 | 1,224.66 |
| Diluted EPS only (₹) | 1.68 | 5.85 | 3.87 |
| Return on Net Worth (%) | 3.09 | 9.25 | 5.81 |
| NAV per Equity Share (₹) | 62.73 | 64.65 | 68.51 |
| Total Assets (in lakhs) | 37,401.35 | 39,050.02 | 41,795.97 |
| Total Liabilities (in lakhs) | 23,716.91 | 18,571.91 | 20,094.72 |
Akme Fintrade India Limited IPO Peer Comparison
While Akme Fintrade India Limited’s Indian counterparts operate in the same industry, distinctions may arise from varying business models, serviced verticals, geographical reach, or customer segments. Despite similarities, unique aspects define their individual businesses.
Akme Fintrade India IPO Objective
The main objective of Akme Fintrade India Limited is its NBFC, a Base layer entity per RBI guidelines, which focuses on rural and semi-urban lending. They’re augmenting their capital base for business expansion, loan extension, debt repayment, operational costs, and maintaining a high CRAR for growth.
Akme Fintrade India IPO Risks And Challenges
Akme Fintrade India Limited’s risk includes revenue decline due to cautious loan disbursement, potential impact on financial health from higher NPAs post-COVID, and penalties from RBI inspections for operational deficiencies.
- Due to COVID-19, they adopted a cautious loan disbursement approach, resulting in a 21.74% revenue decline in FY 2022. This strategy ensured financial stability but may continue impacting revenue if adverse situations recur.
- Managing loan credit quality and NPAs is crucial for their operations. Higher NPAs, especially post-COVID, could impact their ability to raise capital and affect financial health, with no assurance of maintaining industry-comparable NPA levels.
- Periodic RBI inspections identified operational deficiencies, requiring policy changes and compliance. Although no penalties were imposed, future non-compliance or adverse findings may result in fines, adversely affecting their reputation, business, financial condition, and cash flows.
Akme Fintrade India Ltd IPO – Industry & Market Potential
Post-2008 financial crisis, NBFCs filled the credit gap left by banks, leading to a surge in global NBFC credit from USD 52 trillion in 2002 to USD 226 trillion in 2020, comprising 50% of global financial assets.
Indian NBFCs, though minor globally, show significant growth, with their share of the country’s GDP increasing. Over the past decade, they’ve expanded credit at the expense of banks, highlighting their importance in India’s economy.
NBFCs anticipate single-digit AUM growth in FY24, fueled by retail credit demand, technological investments, and steady housing and vehicle loan demand. Improved liquidity and asset quality position them for future growth amidst increasing competition.
Akme Fintrade India Limited IPO – Type of Offer
Akme Fintrade India Limited is coming up with an IPO consisting of a fresh issue of 1,10,00,000 shares worth INR 132 crores. The company aims to augment its capital base to meet future capital requirements and growth opportunities.
Akme Fintrade India IPO Offer Size
The offer size of Akme Fintrade India Limited is INR 132 crores, consisting of a fresh issue of 1,10,00,000 shares. The company seeks funds to augment its capital base to meet future capital requirements and growth opportunities.
Akme Fintrade India Limited IPO Allotment Structure
Akme Fintrade India Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for an Akme Fintrade India IPO?
To apply for the Akme Fintrade India Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Akme Fintrade India Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Akme Fintrade India Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Akme Fintrade India’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Akme Fintrade India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Akme Fintrade India Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Akme Fintrade India Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Akme Fintrade India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE and NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Akme Fintrade India IPO Offer Registrar
The registrar for the Akme Fintrade India Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
S62, 6th Pinnacle Business Park,
Mahakali Caves Road, Next to Ahura Centre,
Andheri East, Mumbai – 400093
Maharashtra, India
Tel: +91 22 6263 8200
Email: [email protected]
Website: www.bigshareonline.com
Akme Fintrade India IPO – FAQs
The allotment date of the Akme Fintrade India Limited IPO is June 24, 2024.
The price band of the issue is INR 114-120 per share.
The offer size of Akme Fintrade India is INR 132 crores, consisting of a fresh issue of shares. The company seeks funds to meet working capital requirements, repay borrowings, and address general corporate needs.
The listing date of Akme Fintrade India Limited’s IPO is June 26, 2024.
