Akme Fintrade (India) Ltd is set to launch its Rs.132 crore initial public offering (IPO, with the subscription period running from June 19 to June 21. The price range for the issue has been set at Rs.114-120 per share. The anchor investor bidding date is scheduled for Tuesday, June 18.
Key Details about Akme Fintrade IPO
Issue Size: The IPO consists entirely of a fresh issue of 1.1 crore shares, with no offer-for-sale component.
Lot Size: The minimum application size is 125 shares, with investments in multiples thereafter. Retail investors must invest a minimum of Rs.15,000.
Objective: The IPO proceeds will primarily strengthen Akme Fintrade's capital base to support future business and asset expansion needs. Some funds will also cover issuance-related expenses.
Reservation:
- 50% of the shares are reserved for qualified institutional buyers (QIBs)
- 15% for non-institutional investors (NIIs)
- 35% for retail investors
- Additionally, 5,50,000 equity shares are reserved for participating employees.
Floor and Cap Price: The floor price is 11.40 times the face value, and the cap price is 12 times the face value. This translates to a price-to-earnings (P/E) ratio of 19.49 times at the floor price and 20.51 times at the cap price.
Company Background: Akme Fintrade, registered with the RBI as a non-systemically important non-deposit taking NBFC, has over two decades of experience in rural and semi-urban lending. It primarily provides financing solutions for vehicle and business needs to small business owners, operating through 12 branches and over 25 physical and digital points of presence.
Promoters: The company’s promoters, Nirmal Kumar Jain, Manju Devi Jain, Dipesh Jain, and Nirmal Kumar Jain Hindu Undivided Family (HUF), collectively hold a 56.01% stake pre-IPO.
Financials: Between FY23, the company's revenue grew by 3.06%, while profit after tax (PAT) surged by 283.5%.
Listed Peers: Akme Fintrade's peers include MAS Financial Services (P/E 26.47), Shriram Finance (P/E 14.73), Cholamandalam Investment and Finance Company (P/E 33.52), Arman Financial Service (P/E 20.99), and CSL Finance (P/E 22.70).
Important Dates:
Book Running Manager and Registrar: Gretex Corporate Services Limited is the lead manager, while Bigshare Services Pvt Ltd is the registrar.
Grey Market Premium (GMP): The current GMP is Rs.33 per share, indicating an expected listing price of Rs.153, a 27.5% premium over the IPO price of Rs.120. This GMP has remained consistent for three sessions since June 14, 2024. Before that, on June 14, the GMP was Rs.30.