Everything you need to know about Akme Fintrade India IPO

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:

  1. Vehicle financing, comprising of Used Commercial Vehicle, 2 Wheeler Loans, Used 2 Wheeler Loans
  2. 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.
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