Akme Fintrade IPO: An Overview and Company Insight
Company Overview
Akme Fintrade India Limited, established in 1996, is a non-banking financial company (NBFC) registered with the Reserve Bank of India. Specializing in providing loans in semi-urban and rural areas, Akme Fintrade primarily offers vehicle finance and business finance products to small business owners. The company operates in four Indian states—Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat—with a network of 7 branches and over 20 presence points. To date, Akme Fintrade has served approximately 200,000 customers.
Financially, the company managed an AUM of ₹32,398.52 lakhs as of September 30, 2022, with a net worth of ₹15,145.7 lakhs. During this period, Akme Fintrade recorded a GNPA and NNPA of 4.87% and 3.84%, respectively, showcasing its stability and efficiency in managing financial risks.
Akme Fintrade IPO Grey Market Premium
The Akme Fintrade IPO has garnered significant interest in the Grey Market. As of recent data, the Grey Market Premium (GMP) for Akme Fintrade IPO stands at ₹40. This premium indicates the willingness of investors to pay a price higher than the issue price, reflecting positive market sentiment and expectations.
Grey Market Premium (GMP) Table:
| Date | Akme Fintrade IPO GMP |
|---|---|
| 19 June | ₹40 |
| 18 June | ₹33 |
Pricing Details and Lot Size – Akme Fintrade IPO
The Akme Fintrade IPO is priced between ₹114 and ₹120 per equity share. The IPO is a book-built issue with a total valuation of ₹132 crore, consisting entirely of a fresh issue of 1.1 crore shares. The lot size for retail investors is 125 shares, amounting to a minimum investment of ₹15,000. Small non-institutional investors can bid for a minimum of 14 lots (1,750 shares), translating to ₹2,10,000, while big non-institutional investors must bid for at least 67 lots (8,375 shares), requiring an investment of ₹10,05,000.
IPO Timelines at a Glance – Akme Fintrade IPO
| Event | Date |
|---|---|
| Bidding Period | June 19-21, 2024 |
| Basis of Allotment | June 24, 2024 |
| Refunds Initiation | June 25, 2024 |
| Credit of Shares | June 25, 2024 |
| Listing on BSE and NSE | June 26, 2024 |
Book-running Lead Managers and Registrar – Akme Fintrade IPO
Gretex Corporate Services Limited is the book-running lead manager for the Akme Fintrade IPO, while Bigshare Services Private Limited acts as the registrar.
Offer for Sale and IPO Size Breakdown – Akme Fintrade IPO
The Akme Fintrade IPO is a fresh issue of 1.1 crore equity shares, aiming to raise ₹132 crore. The funds will be utilized to augment the company’s capital base, meet future capital requirements, and cover issue-related expenses.
Utilisation of Fresh Issuance and Technological Advancements – Akme Fintrade IPO
The proceeds from the Akme Fintrade IPO will be primarily used to enhance the company’s capital base, supporting future growth and expansion plans. The funds will also help in meeting the expenses related to the IPO. Additionally, the company aims to leverage new technologies to improve its lending processes and customer reach, particularly in semi-urban and rural areas.
Conclusion
The Akme Fintrade IPO presents a promising investment opportunity, especially for those looking to invest in a company with a strong presence in semi-urban and rural lending. With a solid financial track record, strategic growth plans, and a positive Grey Market Premium, Akme Fintrade is well-positioned for future success.
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Frequently Asked Questions – Akme Fintrade IPO
What is Akme Fintrade IPO?
Akme Fintrade IPO is the initial public offering of Akme Fintrade India Limited, a leading NBFC specializing in vehicle and business finance in semi-urban and rural areas.
What is the Grey Market Premium (GMP) for Akme Fintrade IPO?
As of recent data, the Grey Market Premium for Akme Fintrade IPO is ₹5.
What is the price range for Akme Fintrade IPO?
The price range for Akme Fintrade IPO is between ₹114 and ₹120 per equity share.
How many shares can a retail investor apply for in Akme Fintrade IPO?
Retail investors can apply for a minimum of 125 shares, which amounts to an investment of ₹15,000.
What are the key dates for Akme Fintrade IPO?
The bidding period is from June 19 to June 21, 2024. The basis of allotment will be finalized on June 24, 2024, and the shares will be listed on June 26, 2024.
Who are the lead managers for Akme Fintrade IPO?
Gretex Corporate Services Limited is the book-running lead manager, and Bigshare Services Private Limited is the registrar.
What will the IPO proceeds be used for?
The proceeds will be used to augment the capital base, support future business expansion, and cover IPO-related expenses.
Is investing in Akme Fintrade IPO a good decision?
Investing in Akme Fintrade IPO could be beneficial due to its strong financial performance, strategic focus on semi-urban and rural markets, and positive investor sentiment reflected in the Grey Market Premium. However, potential investors should consider the risks and consult financial advisors before making a decision.
