Akme Fintrade IPO: Price Band Fixed at ₹114-120 per Share; Key Dates and Grey Market Premium Check

Mumbai: Akme Fintrade (India) Ltd, a non-banking finance company (NBFC), is preparing for its initial public offering (IPO) next week. The price band for the Akme Fintrade IPO is set between ₹114 and ₹120 per share, with each share having a face value of ₹10.

IPO Timeline and Subscription Details

• Subscription Period: Opens on Wednesday, June 19, and closes on Friday, June 21.
• Anchor Investors: Bidding starts on Tuesday, June 18.
• Lot Size: Investors can buy shares in lots of 125.

Price and Valuation

• Floor Price: 11.4 times the face value.
• Cap Price: 12 times the face value.
• Price-to-Earnings (P/E) Ratio: 19.49 times at the floor price and 20.51 times at the cap price.

Company Profile

Akme Fintrade, registered with the Reserve Bank of India (RBI), has been providing lending services in rural and semi-urban areas for over 20 years. The company focuses on vehicle finance and business finance for small business owners in these regions.

Share Allocation

• Qualified Institutional Buyers (QIBs): 50% of shares.
• Non-Institutional Investors (NIIs): 15% of shares.
• Retail Investors: 35% of shares.
• Employees: 5,50,000 equity shares reserved.

Key Dates for IPO Allotment and Listing

• Share Allotment: Expected to be completed by Monday, June 24.
• Refunds: Begin on Tuesday, June 25.
• Shares Credited: By June 25.
• Listing Date: Expected on Wednesday, June 26 on the BSE and NSE.

Financial Performance and Comparisons

• Peers: MAS Financial Services, Shriram Finance, Cholamandalam Investment and Finance, Arman Financial Service, and CSL Finance.
• Growth: Revenue increased by 3.06%, and profit after tax (PAT) grew by 283.5% between March 31, 2022, and March 31, 2023.

IPO Details

The Akme Fintrade IPO aims to raise ₹132 crore through a fresh issue of shares, with no offer-for-sale component. The funds will be used to expand the company’s capital base and cover issue-related costs.

• Lead Manager: Gretex Corporate Services Limited.
• Registrar: Bigshare Services Pvt Ltd.

Grey Market Premium (GMP)

The current grey market premium (GMP) for Akme Fintrade is +₹5, meaning shares are trading at a ₹5 premium. Based on the upper price band of ₹120, the expected listing price in the grey market is around ₹125 per share, a 4.17% increase over the IPO price.

Note: The GMP shows investor interest and readiness to pay more than the issue price.