Udaipur: Akme Fintrade (India), a non-banking financial company (NBFC) from Udaipur, is launching its Initial Public Offering (IPO) on June 19, 2024, and it will close on June 21. The company is offering 1.10 crore new equity shares, each valued at ₹10.
IPO Details
- Price Range: ₹114 to ₹120 per share.
- Minimum Bid: 125 shares per lot.
- Total Funds: At the highest price, the IPO could raise ₹132 crore.
Allocation of Shares
- Qualified Institutional Buyers (QIBs): 50%
- Retail Investors: 35%
- Non-Institutional Investors (NIIs): 15%
Purpose of the IPO
The main goal of this IPO is to strengthen Akme Fintrade’s capital base. As per the Reserve Bank of India (RBI) regulations, NBFCs must maintain a minimum capital adequacy ratio of 15%. As of September 30, 2022, Akme Fintrade’s capital adequacy ratio was 43.24%, with 39.80% in tier-1 capital.
The company aims to grow its loan portfolio and asset base, which will need additional capital to meet the required capital adequacy ratios.
“We need more capital to keep up with the capital adequacy regulations as we expand our loans and assets,” said Akme Fintrade. With the IPO proceeds, the company expects to meet its capital needs in the near to medium term without needing more fresh capital.
Company Background
Akme Fintrade focuses on providing lending solutions to rural and semi-urban areas. Its services include vehicle finance and business finance products for small businesses. The company has a strong history of serving rural and semi-urban markets, with significant growth potential. It has consistently achieved high customer acquisition and retention rates while expanding into underserved regions at a low cost.
Gretex Corporate Services is managing the IPO for Akme Fintrade.
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