Mumbai: On the third day of its initial public offering (IPO), Akme Fintrade has seen an impressive 18 times subscription, receiving bids for 14,41,40,500 shares against the 78,65,000 shares on offer, as per BSE data at 11:15 AM IST.
Subscription Details
- Retail Investors: The quota for retail individual investors (RIIs) has been subscribed 21.32 times.
- Non-Institutional Investors: This quota saw a 41.14 times subscription.
- Qualified Institutional Buyers (QIBs): Subscribed 25%.
On the first day, June 19, the IPO was subscribed 3.01 times and increased to 11.63 times by the second day, June 20.
Price Band and Lot Size
The price band for the IPO is set between ₹114 and ₹120 per share, with a face value of ₹10 each. The IPO is scheduled to close on Friday, June 21. The lot size is 125 equity shares, with additional lots in multiples of 125.
Allocation
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
- Employees: Reserved 5,50,000 equity shares.
IPO Review
Master Capital Services Ltd
The brokerage suggests subscribing for listing gains. They highlight that Akme Fintrade aims to strengthen its capital base for future growth, particularly in rural and semi-urban areas. The company plans to enhance financial inclusion using its market expertise.
Dilip Davda, Contributing Editor at Chittorgarh
Davda notes that Akme Fintrade operates in a highly competitive financial services sector with changing regulations. He believes the IPO is aggressively priced based on annualised FY24 earnings and suggests avoiding the offer.
IPO Details
Akme Fintrade’s IPO aims to raise ₹132 crore, all from fresh issues. The funds will be used to bolster the company’s capital base to support business and asset expansion and cover issue-related expenses. There is no offer-for-sale component.
- Lead Manager: Gretex Corporate Services Limited
- Registrar: Bigshare Services Pvt Ltd
Grey Market Premium (GMP)
The grey market premium (GMP) for Akme Fintrade is currently +30. This indicates that shares are trading at a ₹30 premium in the grey market, according to investorgain.com. Given the upper IPO price band and the current GMP, the expected listing price is around ₹150 per share, which is 25% higher than the issue price of ₹120.
The GMP reflects investor sentiment, showing their willingness to pay more than the issue price in the grey market.
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