About the company
Incorporated in 1996, Akme Fintrade India (www.aasaanloans.com) is an NBFC with over two decades of lending experience in rural and semi-urban geographies in India.
The company operates in two principal lines of business, namely:
- Vehicle financing, comprising of Used Commercial Vehicle, 2 Wheeler Loans, Used 2 Wheeler Loans
- Business Finance to small business owners and SME/MSME business owners
The company primarily caters to rural and semi-urban geographies in 4 Indian states (Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat) with 12 branches and over 25 points of presence including digital and physical branches having served over 2,00,000 customers to date.
| Funds Raised in the IPO | Amount |
|---|---|
| Overall | ₹132 crores |
| Fresh Issue | ₹132 crores |
| Offer for sale | Nil |
Financial Snapshot
| Financial Year Ended | March 2021 | March 2022 | March 2023 | Dec 2023 |
|---|---|---|---|---|
| Total Assets | 455.40 | 374.01 | 390.50 | 417.96 |
| Revenue | 86.79 | 67.50 | 69.57 | 53.45 |
| Profit After Tax | 16.31 | 4.12 | 15.80 | 12.25 |
| EPS | 6.68 | 1.68 | 5.85 | 3.87 |
*All figures except EPS are in ₹ Crores
Risk factors
-
Elevated NPAs compared to industry peers: The company exhibits higher levels of Non-Performing Assets (NPAs) in comparison to some of its peer firms. Consequently, our business could face adverse effects if we are unable to adequately account for these elevated NPA levels.
-
Compliance concerns: The company has previously failed to adhere to specific Reserve Bank of India (RBI) norms and guidelines. Any non-compliance with RBI regulations and guidelines, as well as violations of prescribed regulations, could subject the company to penalties and restrictions.
-
Geographical concentration risk: The company’s business operations are heavily concentrated in the state of Rajasthan. Any challenges in expanding their business or exploring new opportunities in different regions and markets could potentially have a negative impact on their financial performance.
| Issue Period | 19 – 21 June 2024 |
|---|---|
| Price band | ₹ 114 to 120 |
| Minimum Bid quantity | 125 & Multiples thereof |
| UPI Mandate Deadline | 5 PM, 21 June 2024 |
| Allotment Finalization | 24 June 2024 |
| Refund Initiation | 25 June 2024 |
| Share Credit | 25 June 2024 |
| Listing Date | 26 June 2024 |
| Mandate end date | 6 July 2024 |
| Lock-In End Date for Anchor Investors (50%) | 23 July 2024 |
| Lock-In End Date for Anchor Investors (Remaining) | 21 September 2024 |
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by June 24, 2024, on the Registrar’s website.