Akme Fintrade IPO: Akme Fintrade (India) Ltd is gearing up to launch its ₹132 crore initial public offering (IPO) on D-Street next week, with the subscription period running from June 19 to June 21. The company has set the price band for the issue at ₹114-120 per share.
Also, the anchor investor bidding date had been set for Tuesday, June 18.
Here are key things to know about Akme Fintrade IPO before it opens for subscription
Issue size: Akme Fintrade IPO is completely comprised a fresh issue of 1.1 crore shares. There is no offer-for-sale component.
Lot Size: The minimum lot size for an application is 125 shares and in multiples thereafter. The minimum amount of investment required by retail investors is ₹15,000.
Objective: The proceeds from the IPO will be used to primarily bolster Akme Fintrade (India) Ltd’s capital base, enabling it to support future business and asset expansion needs. Additionally, a portion of the funds raised will be allocated toward covering expenses related to the issuance.
Reservation: In the Akme Fintrade IPO, 50% of the shares are reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. Additionally, 5,50,000 equity shares have been set aside for employees participating in the offering.
Floor Price: The floor price of the Akme Fintrade IPO is set at 11.40 times the face value, while the cap price stands at 12 times the face value. At the floor price, the price-to-earnings ratio (P/E) is 19.49 times, and at the cap price, it is 20.51 times.
About the firm: The NBFC is registered with the RBI as a non-systemically important non-deposit taking firm and has over two decades of lending expertise in rural and semi-urban areas of India. The company’s primary focus is on financing solutions for rural and semi-urban populations in order to meet their needs and goals. The company offers Vehicle Finance and Business Finance Products to small business owners. The company has 12 branches and more than 25 points of presence, including digital and physical branches.
Nirmal Kumar Jain, Manju Devi Jain, Dipesh Jain and Nirmal Kumar Jain Hindu Undivided Family (HUF) are the company’s promoters and hold 56.01% stake together before the public issue.
Financials: Akme Fintrade India Ltd’s revenue scaled by 3.06 percent, while profit after tax (PAT) increased by 283.5 percent between in FY23.
Listed Peers: The company’s listed peers are MAS Financial Services (with a P/E of 26.47), Shriram Finance (with a P/E of 14.73), Cholamandalam Investment and Finance Company (with a P/E of 33.52), Arman Financial Service (with a P/E of 20.99), and CSL Finance (with a P/E 22.70).
Important Dates: The basis of allocation for the Akme Fintrade IPO is expected to be finalized by Monday, June 24. Refunds are slated to begin on Tuesday, June 25, with shares credited to the demat accounts of allottees on the same day. Akme Fintrade’s shares are anticipated to debut on the BSE and NSE on Wednesday, June 26.
Book running manager and Registrar: Gretex Corporate Services Limited is the book-running lead manager for the Akme Fintrade IPO, while Bigshare Services Pvt Ltd is the registrar.
Akme Fintrade IPO GMP Today
Akme Fintrade IPO GMP today, or grey market premium today, is ₹33 per share. This means that the IPO is expected to list at a premium of 27.5 percent at ₹153, as against the IPO price of ₹120 per share.
The GMP has remained at ₹33 for 3 straight sessions now since June 14, 2024. Before that, on June 14, the GMP was ₹30.
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Published: 17 Jun 2024, 12:12 PM IST
