Akme Fintrade IPO: Price Band Set at ₹114-120 per Share: Everything You Need To Know

IPO Price

June 15, 2024

New Delhi, India

Akme Fintrade (India) Ltd, a non-banking finance company specializing in rural and semi-urban financing, is set to launch its initial public offering (IPO) next week. Here are the key details you need to know:

IPO Price Band and Lot Size

  • Price Band: ₹114 to ₹120 per share
  • Face Value: ₹10 per share
  • Lot Size: 125 equity shares and multiples thereafter
  • Subscription Dates: June 19 to June 21, 2024
  • Anchor Investor Bidding Date: June 18, 2024

Allocation and Reservations

  • Qualified Institutional Buyers (QIBs): 50%
  • Non-Institutional Investors (NIIs): 15%
  • Retail Investors: 35%
  • Employees: 5,50,000 equity shares

Company Overview

  • Focus: Financing solutions for rural and semi-urban populations, offering vehicle and business finance products.
  • Registration: Non-systemically important non-deposit taking NBFC registered with the RBI.
  • Experience: Over two decades in lending.

Financial Performance

  • Revenue Growth: Increased by 3.06% between March 31, 2022, and March 31, 2023.
  • Profit After Tax (PAT): Increased by 283.5% during the same period.

Peer Comparison

  • MAS Financial Services: P/E of 26.47
  • Shriram Finance: P/E of 14.73
  • Cholamandalam Investment and Finance Company: P/E of 33.52
  • Arman Financial Service: P/E of 20.99
  • CSL Finance: P/E of 22.70

IPO Details

  • Issue Size: ₹132 crore (fresh issue, no offer-for-sale component)
  • Use of Proceeds: To increase the company’s capital base for future expansion and to cover issue-related expenditures.
  • Book-Running Lead Manager: Gretex Corporate Services Limited
  • Registrar: Bigshare Services Pvt Ltd

Important Dates

  • Basis of Allocation: June 24, 2024
  • Refunds Initiated: June 25, 2024
  • Shares Credited to Demat Accounts: June 25, 2024
  • Listing Date: June 26, 2024

Grey Market Premium (GMP)

  • Current GMP: +₹5
  • Expected Listing Price: ₹125 per share (4.17% higher than the upper IPO price of ₹120)

The grey market premium (GMP) indicates that investors are willing to pay a premium over the IPO price, reflecting positive sentiment towards the IPO.

Bottom Line

Akme Fintrade’s IPO presents a significant opportunity for investors, particularly those interested in the rural and semi-urban financing sector. With a strong financial track record and positive market sentiment reflected in the grey market premium, this IPO is expected to attract considerable interest.

Stay tuned for more updates on the stock market and financial news.

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