Akme Fintrade IPO Sees Strong Demand on Day 2: Subscription Status, Grey Market Premium, and Expert Reviews

The IPO of Akme Fintrade India Ltd., a non-banking financial company (NBFC), has generated strong interest from investors. Opening on 19th June and closing on 21st June, this IPO has been oversubscribed on its first day itself.

Pricing and Fundraising

The IPO price range is set between ₹114 to ₹120 per share. At the top end of this range, Akme Fintrade aims to raise ₹132 crore through a fresh issue of 1.1 crore shares. The funds will be used to strengthen the company’s capital base.

Investment Details

• Lot Size: 125 shares
• Minimum Investment: ₹15,000 for retail investors

Key Dates

• Allotment Date: 24th June
• Listing Date: 26th June

The shares will be listed on both the BSE and NSE. Gretex Corporate Services Ltd is managing the IPO, and Bigshare Services Pvt Ltd is the registrar.

Subscription Status

On the second day of bidding (20th June), the IPO is subscribed 3.01 times. Here’s the breakdown:

• Retail Category: 4.16 times
• Non-Institutional Investors (NII): 5.15 times
• Qualified Institutional Buyers (QIBs): 2%

Grey Market Premium (GMP)

As of today, Akme Fintrade’s IPO GMP stands at ₹48 per share. This means shares are trading at ₹168 in the grey market, a 40% premium over the top IPO price of ₹120.

Should You Subscribe?

Akme Fintrade India focuses on lending in rural and semi-urban areas, with products like Vehicle Finance and Business Finance.

• Anand Rathi’s Take: Positive. They highlight Akme’s strong position in vehicle and small business lending, customer-centric approach, and efficient hub-and-spoke model. At the upper price band, Akme is valued at a P/E of 27.64x, P/BV of 1.52x, and a market cap of ₹512.1 crore. Anand Rathi suggests a “Subscribe-Long Term” rating.
• Swastika Investmart’s View: Cautious. They recommend a ‘Neutral’ rating, noting that despite the positive GMP, there are significant risks that may outweigh the benefits for many investors.

The Akme Fintrade IPO has seen strong initial interest, especially in the retail and NII categories. However, while the high GMP indicates good market sentiment, potential investors should weigh the inherent risks against the perceived benefits.