IPO Details
Bidding Dates
19 Jun '24 - 21 Jun '24
Minimum Investment
₹15,000/1 Lot ( 125 Shares )
Price Range
₹114 - ₹120
Maximum Investment
₹195,000/13 Lot ( 1625 Shares )
Retail Discount
To be announced
Issue Size
₹132.00 Cr
Investor category and sub category
Qualified Institutional Buyers (QIBs) | Retail Individual Investors (RIIs) | Non-institutional Investors (NIIs) |IPO Dates
Important dates with respect to IPO allotment and listing
IPO Opening Date
Jun 19, 2024
IPO Closing Date
Jun 21, 2024
Basis of Allotment
Jun 24, 2024
Initiation of Refunds
Jun 25, 2024
Credit of Shares to Demat
Jun 25, 2024
IPO Listing Date
Jun 26, 2024
Cut-off time for UPI mandate confirmation
Jun 21, 2024
IPO Subscription Details
| Date | QIB | NII | Retail | EMP | Total |
|---|---|---|---|---|---|
Day 1Jun 19, 2024 |
0.02x | 5.18x | 4.28x | 0.57x | 3.07x |
IPO Subscription Status Live
| Investor Category | Subscription (Times) |
|---|---|
| Qualified Institutional Buyers | 0.02 |
| Non-Institutional Buyers | 8.94 |
| Retail Investors | 7.29 |
| Employees | 0.83 |
| Total | 5.23 |
About Akme Fintrade India Limited
Akme Fintrade India Limited, established in 1996 and regulated by the Reserve Bank of India, specialises in non-banking financial services tailored for rural and semi-urban regions across India. With a robust history spanning over two decades, AKME Fintrade focuses primarily on providing essential financial solutions to these underserved areas. Their portfolio includes vehicle finance and business finance products aimed at small business owners and SMEs.
The company is currently developing a digital lending platform, www.aasaanloans.com, which is in the User Acceptance Testing phase. Initially focusing on two-wheeler finance, this platform aims to enhance accessibility to financing options for individuals previously excluded from mainstream financial services.
AKME Fintrade operates from Udaipur, Rajasthan, with a corporate office in Mumbai and 12 branches across Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat. They maintain a distributed presence through physical and digital branches, facilitating seamless service delivery and customer engagement.
With a structured "hub & spoke" business model, AKME Fintrade integrates advanced technology to streamline operations and ensure efficient loan processing and credit monitoring. They emphasise strong customer relationships and operational excellence to sustain growth and meet the evolving financial needs of their clientele.
Industry Outlook:
- The credit market in India has witnessed substantial growth, with total outstanding credit reaching approximately INR 198 lakh crore as of March 2023, marking a 14% increase over the previous year. This growth trend indicates a robust appetite for credit across various sectors of the economy, driven by both consumer and commercial demand.
- NBFCs are pivotal in India's financial sector, extending credit to underserved rural households and small businesses. With about 9,500 NBFCs nationwide, they significantly enhance financial inclusion. AKME Fintrade can capitalise on this by expanding operations and offering diverse products, effectively catering to these segments' credit needs for sustained growth.
- Recent regulatory reforms, including the scale-based regulatory framework introduced by the Reserve Bank of India (RBI) for NBFCs, aim to strengthen the sector's resilience while effectively managing risks. For AKME Fintrade, adherence to these regulations ensures operational stability and enhances investor confidence, crucial for sustaining growth in a regulated environment.
Akme Fintrade India Limited IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Utilise proceeds to bolster the company's capital base to meet future requirements arising from business and asset expansions, including loans in vehicle and business/MSME segments, adhering to regulatory norms.
- The company intends to use a portion of the proceeds to cover Issue-related expenses, including fees for BRLM, legal counsel, statutory auditor, brokerage, underwriting, registrar, and other incidental costs for listing on stock exchanges.
- Pending full deployment, temporarily invest net proceeds in approved scheduled commercial bank deposits, ensuring compliance with regulatory guidelines and refraining from equity market investments as per the Companies Act, 2013.
Peer Details
The following are the listed peers of Akme Fintrade India Limited:
- MAS Financial Services Limited
- Shriram Finance Limited
- Cholamandalam Investment and Finance Company Limited
- Arman Financial Service Limited
- CSL Finance Limited
How to Check the Allotment Status of the Akme Fintrade India Limited IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Go to the Individual order details page of the IPO that you had applied for.
- Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email, and SMS.
Contact Details of Akme Fintrade India Limited IPO
- Registered office: AKME Business Centre (ABC), 4-5 Subcity Centre, Savina Circle opp. Krishi Upaz Mandi Udaipur, Rajasthan - 313002
- Phone: +91-294-2489501-02
- E-mail:cs@aasaanloans.com
Company Financials
| Particulars | Year ending on December 31, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|---|
| Revenue from Operations (in ₹ lakh) | 5,340.49 | 6,951.37 | 6,744.13 | 8,617.72 |
| Total Revenue (%) | 3,618.83 | 4,827.98 | 4,328.43 | 6,790.54 |
| EBITDA Margin (%) | 67.76 | 69.45 | 64.18 | 78.80 |
| EPS (Basic) | 2.49 | 1.68 | 6.68 | |
| Profit After Tax (PAT) (in ₹ lakh) | 1,224.66 | 1580.27 | 412.07 | 1,630.50 |
| PAT Margin (%) | 22.93 | 22.73 | 6.11 | 18.92 |
| Cash & Cash Equivalents (in ₹ lakh) | 1,305.98 | 737.39 | 74.07 | 1,060.03 |
| Net Debt to Equity Ratio (x) | 0.84 | 0.83 | 1.68 | 2.36 |
| Return on Equity (%) | 5.64 | 7.72 | 3.01 | 12.52 |
| Return on Net Worth (%) | 5.81 | 9.25 | 3.09 | 13.57 |
Know before investing
Strengths
4-
Excels in underserved markets, boasting high customer retention and acquisition rates.
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Established foothold in key states like Rajasthan, Maharashtra, Gujarat, and Madhya Pradesh.
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Rigorous credit assessment ensures sustainable growth and maintains asset quality.
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Enhancing operational efficiency and customer service.
Risks
3-
Experienced revenue decline in FY 2022 due to cautious lending during COVID-19, with ongoing revenue challenges.
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Breaches of RBI norms and unapproved changes in shareholding may lead to penalties.
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Operations primarily focused in Rajasthan limit expansion opportunities into new markets.
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Akme Fintrade India (Aasaan Loans) IPO FAQs
Akme Fintrade India Limited IPO is a book-built IPO. The IPO will be open from June 19, 2024, to June 21, 2024.
The Basis of Allotment will happen on Monday, June 24, 2024.
The IPO subscription window will open on June 19, 2024.
The lot size for Akme Fintrade India Limited’s IPO is 1 lot of 125 shares, with a minimum investment of ₹15,000.
The listing date for Akme Fintrade India Limited is Wednesday, June 26, 2024.
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.
You must complete the payment process by logging in to your UPI handle and approve the payment mandate.
You can submit only one application using your PAN card.
