Akme Fintrade (India) Ltd is launching its initial public offering (IPO) worth ₹132 crore next week. Here’s a simple breakdown of what you need to know:
IPO Dates
The IPO opens for subscription on 19th June 2024 and closes on 21st June 2024.
Price Band
The price range for the IPO is set between ₹114 and ₹120 per share.
Anchor Investor Bidding
Anchor investors can bid on 18th June 2024.
Issue Size
The IPO is a fresh issue of 1.1 crore shares, with no existing shares being sold.
Lot Size
- Minimum Lot Size: 125 shares.
- Minimum Investment: ₹15,000 for retail investors.
Objective of the IPO
Funds raised will be used to:
- Increase Akme Fintrade’s capital base to support future growth.
- Cover IPO-related expenses.
Reservation
- 50% of shares are for qualified institutional buyers (QIBs).
- 35% for retail investors.
- 15% for non-institutional investors (NIIs).
- 5,50,000 equity shares are reserved for employees.
Pricing Details
- Floor Price: 11.40 times the face value.
- Cap Price: 12 times the face value.
- P/E Ratio: At the floor price, it’s 19.49 times; at the cap price, it’s 20.51 times.
Company Background
Akme Fintrade is a non-banking financial company (NBFC), registered with the RBI, with over 20 years of experience. It focuses on lending in rural and semi-urban areas. They offer:
- Vehicle Finance
- Business Finance
The company has 12 branches and 25 points of presence, including digital and physical branches.
Promoters
The company is promoted by Nirmal Kumar Jain, Manju Devi Jain, Dipesh Jain, and Nirmal Kumar Jain Hindu Undivided Family (HUF), who together hold 56.01% stake before the IPO.
Financial Highlights
- Revenue Growth: Increased by 3.06% in FY23.
- Profit After Tax (PAT): Rose by 283.5% in FY23.
Listed Peers
- MAS Financial Services (P/E: 26.47)
- Shriram Finance (P/E: 14.73)
- Cholamandalam Investment and Finance Company (P/E: 33.52)
- Arman Financial Service (P/E: 20.99)
- CSL Finance (P/E: 22.70)
Important Dates
- Allotment: Finalized by 24th June 2024.
- Refunds: Start on 25th June 2024.
- Shares Credited to Demat Accounts: On 25th June 2024.
- Listing on BSE and NSE: On 26th June 2024.
Book Running Manager and Registrar
- Lead Manager: Gretex Corporate Services Limited
- Registrar: Bigshare Services Pvt Ltd
GMP (Grey Market Premium) Today
- Current GMP: ₹33 per share.
- Expected Listing Price: ₹153 per share, which is a 27.5% premium over the IPO price of ₹120 per share.
The GMP has stayed at ₹33 for the last three sessions, showing steady interest in the IPO.
This IPO aims to strengthen Akme Fintrade’s financial position and expand its services, making it an interesting opportunity for investors.
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