Akme Fintrade IPO Opens for Subscription: Key Details and Market Response

Australian Premium

June 19, 2024

New Delhi, India

IPO Watch

The Akme Fintrade (India) Ltd initial public offering (IPO) opens today, June 19, for subscription. The non-banking finance company (NBFC) has set the price band for the IPO at ₹114-120 per share. The subscription period ends on Friday, June 21.

IPO Details

  • Price Band: ₹114-120 per share (face value of ₹10 each).
  • Subscription Period: June 19 to June 21.
  • Lot Size: 125 equity shares, with subsequent lots in multiples of 125 shares.
  • Allocation:
    • Qualified Institutional Buyers (QIB): 50%
    • Non-Institutional Investors (NII): 15%
    • Retail Investors: 35%
    • Employees: 5,50,000 equity shares

Company Background

Akme Fintrade, an NBFC registered with the Reserve Bank of India (RBI), has over two decades of experience in providing financial solutions in rural and semi-urban areas. The company specializes in vehicle financing and business finance products for small business owners.

IPO Structure and Use of Proceeds

The IPO, valued at ₹132 crore, consists entirely of a fresh issue with no offer-for-sale component. The proceeds will be used to enhance the company’s capital base, supporting future business and asset expansion. Part of the funds will also cover issue-related expenses.

Subscription Status

On June 18, Akme Fintrade raised about ₹38 crore from anchor investors. The anchor book included Sigma Global Fund, Zeal Global Opportunities Fund, SB Opportunities Fund 1, and Vikasa India EIF Fund 1.

Market Response

  • Grey Market Premium (GMP): As of today, Akme Fintrade shares have a grey market premium of ₹40, indicating shares are trading at a premium in the grey market. Considering the upper end of the price band (₹120) and the current GMP, the expected listing price is ₹160 per share, 33.33% higher than the IPO price.

Investment Advisory

Swastika Investmart Ltd has recommended a cautious approach towards the Akme Fintrade IPO due to competitive market conditions and compliance concerns.

Key Dates

  • IPO Opens: June 19
  • IPO Closes: June 21


Investors are advised to review the details and consider market conditions before subscribing to the Akme Fintrade IPO. With a strong focus on rural and semi-urban financing, the company aims to expand its reach and enhance its capital base through this public offering.

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