Akme Fintrade IPO: Akme Fintrade (India) Ltd is launching a ₹132 crore initial public offering (IPO).
- Subscription period: June 19 to June 21.
- Price band: ₹114-120 per share.
- Fresh issue of 1.1 crore shares, with no offer-for-sale component.
Investment Details:
- Minimum lot size: 125 shares.
- Minimum investment for retail investors: ₹15,000.
Objectives:
- Strengthen the company’s capital base.
- Support future business and asset expansion.
- Cover issuance expenses.
Reservation:
- 50% of shares reserved for qualified institutional buyers (QIBs).
- 15% for non-institutional investors (NIIs).
- 35% for retail investors.
- 5,50,000 shares reserved for employees.
Pricing:
- Floor price: 11.40 times the face value.
- Cap price: 12 times the face value.
- Price-to-earnings ratio: 19.49 times at the floor price, 20.51 times at the cap price.
Company Overview:
- Registered as a non-systemically important non-deposit taking NBFC with RBI.
- Over two decades of lending expertise in rural and semi-urban India.
- Offers Vehicle Finance and Business Finance products.
- 12 branches and over 25 points of presence (digital and physical).
Promoters:
- Nirmal Kumar Jain, Manju Devi Jain, Dipesh Jain, and Nirmal Kumar Jain Hindu Undivided Family (HUF).
- Hold 56.01% stake collectively before the IPO.
Financial Performance:
- Revenue increased by 3.06%.
- Profit after tax (PAT) surged by 283.5% in FY23.
Listed Peers:
- 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)
- CSL Finance (P/E: 22.70)
Important Dates:
- Basis of allocation: June 24.
- Refunds begin: June 25.
- Shares credited to demat accounts: June 25.
- Listing on BSE and NSE: June 26.
Managers:
- Book-running lead manager: Gretex Corporate Services Limited.
- Registrar: Bigshare Services Pvt Ltd.
Grey Market Premium (GMP):
- Current GMP: ₹33 per share.
- Expected listing price: ₹153 per share, 27.5% premium over the IPO price.
- GMP has remained steady at ₹33 since June 14, previously at ₹30.
