Akme Fintrade IPO opens today: Check latest GMP, subscription status, key dates, more. Apply or not?

Akme Fintrade IPO: The initial public offering of Akme Fintrade (India) Ltd opens for subscription today (Wednesday, June 19). The non-banking finance company (NBFC) raised about ₹38 crore from anchor investors on Tuesday, June 18. The anchor book featured Sigma Global Fund, Zeal Global Opportunities Fund, SB Opportunities Fund 1, and Vikasa India EIF Fund 1, as per company's exchange filing. 

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.

Also Read: Akme Fintrade IPO: From latest GMP to lot size, here are key things to know

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.

The Udaipur-based NBFC is registered with the RBI as a non-systemically significant non-deposit taking business, and it has over two decades of lending experience in rural and semi-urban India. The company's major focus is on financing solutions for rural and semi-urban communities to suit their requirements and objectives. Small business owners can get vehicle financing and business finance products from the firm.

Also Read: Akme Fintrade IPO: NBFC garners ₹38 crore from anchor investors ahead of public issue

Akme Fintrade IPO subscription status 

The offering had a favourable response from retail and non-institutional investors on the first day of bidding. The Akme Fintrade IPO subscription status is 3.01 times, as per BSE data. 

The retail portion has been booked 4.18 times, the NII portion has been subscribed to 5.15 times, and the employee section has garnered 56% subscriptions. Qualified Institutional Buyers segment was booked 2%.

The initial share sale received bids for 2,37,03,250 shares against 78,65,000 shares on offer, as per BSE data.

Akme Fintrade IPO Review

Swastika Investmart Ltd

The brokerage added in its analysis that, while the firm has a significant presence in these underbanked regions and has lately showed solid financial performance, certain concerns should be carefully considered by potential investors.

For starters, India's NBFC business is extremely competitive, necessitating strategic differentiation in order to sustain market share. Second, Akme Fintrade has had compliance troubles in the past, which raises further worries. Furthermore, the company's significant NPAs and poor credit rating suggest future issues. The IPO value exacerbates these worries, since it appears fully priced in the present market environment.

“Given these considerations, we recommend taking a cautious approach to the Akme Fintrade India IPO. While the Grey Market Premium (GMP) indicates some investor interest, the associated dangers exceed the potential rewards for most investors. Thus, we rate this IPO neutrally,” the brokerage said. 

Dilip Davda

Dilip Davda, the contributing editor at Chittorgarh, stated that the firm operates in a highly competitive and fragmented financial services market. It also has ever-changing regulatory guidelines. Based on FY24 annualised profits, the issue is priced aggressively. There is no harm in declining this expensive offer.

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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: Price band set at ₹114-120 per share; check GMP, key dates, issue details, more

Akme Fintrade IPO GMP today

Akme Fintrade IPO grey market premium is +40. This indicates Akme Fintrade share price were trading at a premium of ₹40 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 ₹160 apiece, which is 33.33% 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.