IPO Details
Bidding Dates
19 Jun 24 - 21 Jun 24
Price Range ₹
114 - 120
Total Equity
₹ 132.00Cr
Lot Size
125
Exchange Status
NSE,BSE
IPO Doc
Subscription Rate
Non-Institutional Investor
45.78×
Qualified Institutional Buyers
28.12×
Employees
5.53×
Retail Investors
45.78×
Total subscription Rate
55.12×
IPO Timeline
Offer start
19 Jun 2024
Offer end
21 Jun 2024
Allotment
24 Jun 2024
Refund initiation
25 Jun 2024
Demat transfer
25 Jun 2024
Listing
26 Jun 2024
Offer start
19 Jun 2024
Offer end
21 Jun 2024
Allotment
24 Jun 2024
Refund initiation
25 Jun 2024
Demat transfer
25 Jun 2024
Listing
26 Jun 2024
About Company
Incorporated in 1996, Akme Fintrade India Ltd is a non-banking financial company (NBFC) with over 20 years of experience in lending to rural and semi-urban areas in India. The company primarily provides lending solutions tailored to the needs and aspirations of rural and semi-urban populations. Its portfolio includes Vehicle Finance and Business Finance products designed for small business owners. Akme Fintrade operates in rural and semi-urban regions across four Indian states: Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat. It has a registered office in Udaipur, Rajasthan, and a corporate office in Mumbai, Maharashtra. With 12 branches and over 25 points of presence, including both digital and physical branches, the company has served over 200,000 customers. The company finances the purchase of new two-wheelers and three-wheelers, such as scooters, motorcycles, and auto-rickshaws, for both salaried professionals and self-employed individuals.
Year Founded
05-02-1996
Promotor Details
Nirmal Kumar Jain
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 56.01 | 41.57 |
| Share Capital | 17740826 | 17740826 |
Offer to Public
1,10,00,000.00 Cr
Project Details
- Brokerage, selling commission, bidding charges, processing fees and bidding charges - 22.9cr
- BRLM fees and commissions (including underwriting commission) - 68.738cr
- Other regulatory expenses - 27.668cr
- Fees payable to the legal counsel - 11cr
- Listing fees, SEBI filing fees, BSE & NSE processing fees, book building software fees - 2.72cr
- Miscellaneous - 5.169cr
- Printing and stationery expenses - 0.568cr
- Advertising and marketing expenses for the Issue - 1.838cr
Objectives
- The company proposes to utilize the Net Proceeds from the Issue towards augmenting the capital base of the company to fulfil its future capital requirements, which are anticipated to arise as a result of the expansion of the business and assets. Further, a portion of the proceeds from the Issue will be used towards meeting Issue-related expenses.
Highlights
- Proven execution capabilities with a strong focus on rural markets.
- Established expertise in Vehicle Finance and lending to small businesses.
- Experienced and stable management team.
- Customer-centric approach with a deep understanding of target markets.
- Effective asset liability management and diversified sources of capital.
Challenges
- The company experienced a decline in revenue in Fiscal Year 2022 and may face similar declines in the future. Additionally, it has higher levels of non-performing assets (NPAs) compared to its peers, which could adversely impact its business if it fails to manage these NPAs effectively.
- The company has a history of non-compliance with certain RBI norms and guidelines, which could lead to penalties and restrictions. This includes changes in shareholding and management without prior RBI approval during FY 2021-22 and FY 2022-23.
- The company's operations are heavily concentrated in the State of Rajasthan. This geographical focus could pose risks if the company faces challenges in expanding to new regions or markets, potentially affecting its operational results.
- The company is involved in various legal proceedings, including a civil suit alleging illegal mortgage acquisition and investigations by Income-tax authorities. Adverse outcomes in these proceedings could negatively impact its reputation, business, and financial condition.
- The company's current low credit ratings could hinder its ability to service debts and raise funds in the future. Any further downgrade in credit ratings could adversely affect its operations, financial condition, and ability to secure necessary funding.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2020 | 51,501.81 | 2,167.43 | 412.07 | 412.07 | 1.6864 |
| 2023 | 38,900.61 | 3,167.50 | 412.07 | 412.07 | 1.6864 |
| 2022 | 37,302.60 | 2,181.65 | 1,852.92 | 1,852.92 | 5.8498 |
| 2021 | 45,340.94 | 2,181.65 | 1,630.50 | 1,630.50 | 6.6729 |
| 2024 | 43,348.13 | 3,167.50 | 412.07 | 412.07 | 1.6864 |
