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

June 14, 2024

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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.

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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.

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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.

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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.

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