BackAkme Fintrade IPO closes today: Issue oversubscribed by 55.12x. Check GMP, subscription status. Should you apply?
Akme Fintrade IPO garners massive interest with 55.12 times subscription. Retail investors subscribe 45.78 times, non-institutional investors 130.33 times. Brokerage recommends subscribing for potential gains as company aims to expand in rural and semi-urban sectors.
PremiumAkme Fintrade IPO subscription status: The initial public offer of the Udaipur-based non-banking finance company (NBFC) Akme Fintrade (India) Ltd. has received quite a great response from non-institutional and retail investors, leading to the issue's oversubscription. Akme Fintrade IPO has received 55.12 times subscription so far on the third day of bidding on Friday, June 21.
The initial share sale received bids for 43,35,52,375 shares against 78,65,000 shares on offer, according to BSE data.
The retail individual investor (RII) quota received 45.78 subscriptions, but the non-institutional investor quota received 130.33 subscriptions. A section of the subscription, designated for Qualified Institutional Buyers (QIBs), received 28.12 times subscriptions.
Akme Fintrade IPO received 3.01 times subscription on the first day of bidding on Wednesday, June 19 and was booked 11.63 times on the second day on Thursday, June 20.
Akme Fintrade IPO price band has been established between ₹114 and ₹120 per face value of ₹10 each. The Reserve Bank of India's (RBI) registered NBFC subscription is set to end on Friday, June 21. The Akme Fintrade IPO lot size is 125 equity shares, with subsequent lots being multiples of 125 equity shares.
The Akme Fintrade IPO has allocated 50% of the shares to qualified institutional buyers (QIB), 15% to non-institutional institutional investors (NII), and 35% to retail investors. The employees' segment has been reserved 5,50,000 equity shares.
Also Read: Akme Fintrade IPO subscribed 3 times on Day 1; check GMP and other key details
Akme Fintrade IPO Review
Master Capital Service Ltd
The brokerage claims that the company wants to increase its capital base in order to meet its future capital needs as it expands. The firm intends to expand by carefully focusing on areas with strong development potential in the rural and semi-urban sectors. The NBFC hopes to improve financial inclusion and service delivery throughout India by utilising its wealth of market knowledge.
"Given the small size of the company and the valuation of the IPO, we advise to Subscribe to the IPO for listing gains," the brokerage said.
Dilip Davda
Contributing editor at Chittorgarh, Dilip Davda, said the company works in a fragmented and fiercely competitive financial services industry. It also has constantly evolving regulatory requirements. The issue is priced aggressively based on FY24 annualised earnings. It wouldn't hurt to turn down this pricey offer.
Akme Fintrade IPO details
Akme Fintrade IPO, which is worth ₹132 crore, completely comprises a fresh issue, and there is no offer-for-sale component.
The firm intends to use the net proceeds from the issue to increase the company's capital base in order to meet future capital requirements that are expected to occur as a consequence of business and asset expansion. Furthermore, a part of the revenues from the issuance will be utilised to cover issue-related expenditures.
Gretex Corporate Services Limited is the book-running lead manager for the Akme Fintrade IPO, while Bigshare Services Pvt Ltd is the registrar.
Also Read: Akme Fintrade IPO: From latest GMP to lot size, here are key things to know
Akme Fintrade IPO GMP today
Akme Fintrade IPO grey market premium is +30. This indicates Akme Fintrade share price were trading at a premium of ₹30 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, Akme Fintrade IPO expected listing price was indicated at ₹150 apiece, which is 25% higher than the IPO price of ₹120.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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