Akme Fintrade shares will be listed on the stock exchanges on Wednesday. Before the listing, the company’s shares had a grey market premium (GMP) of Rs 18 in the unlisted market. With an upper price band of Rs 120, the stock is expected to list at a 15% premium over the issue price.
Understanding Grey Market Premium
However, it’s important to remember that grey market premiums are just an indicator of how shares are performing in the unlisted market and can change quickly.
IPO Subscription and Objectives
The IPO, which was a fresh equity sale of 1.1 crore shares, was subscribed 53 times by the time it closed.
The primary goal of the IPO is to increase Akme Fintrade’s capital base. According to RBI norms, NBFCs (Non-Banking Finance Companies) need a minimum capital adequacy of 15%. The company plans to use the raised funds to grow its loan advances and meet capital adequacy regulations without needing more capital in the short to medium term.
Company Overview
Akme Fintrade is an NBFC that provides lending solutions to rural and semi-urban areas. They offer vehicle and business finance products for small business owners. The company has a strong history in these markets, showing high growth potential and maintaining good financial performance. They have a high rate of customer acquisition and retention, and they expand efficiently into underpenetrated areas.
In FY23, Akme Fintrade’s revenue grew to Rs 69.51 crore from Rs 67.44 crore the previous year. Their profit after tax increased significantly to Rs 15.80 crore from Rs 4.12 crore a year earlier.
Gretex Corporate Services is the lead manager for the public offer.
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