Akme Fintrade India Limited IPO (Aasaan Loans IPO) Review –
Akme Fintrade India Limited IPO (Aasaan Loans IPO) is set to open from 19th June 2024 to 21st June 2024. This article will analyze the financials , strengths and weaknesses of the Akme Fintrade India Limited IPO (Aasaan Loans IPO). Keep scrolling below to read more!
Akme Fintrade India Limited IPO (Aasaan Loans IPO) Overview –
Established 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 mainly provides lending solutions tailored to the needs and aspirations of rural and semi-urban populations. Its portfolio comprises Vehicle Finance and Business Finance Products for small business owners.
The company operates in rural and semi-urban areas 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 digital and physical branches, it 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 salaried professionals and self-employed non-professionals.
The company has 125 permanent employees as of December 31, 2023, and prioritizes their overall welfare.
Akme Fintrade India Limited IPO (Aasaan Loans IPO) Synopsis-
Akme Fintrade India Limited IPO (Aasaan Loans IPO) is set to be open from 19th June 2024 to 21st June 2024, offering only fresh issue of 1.1 crore shares aggregating to Rs 132.00 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs. 132.00 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 19th June 2024 |
| Closing Date | 21st June 2024 |
| Lot Size | 125 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 132 Cr |
| Fresh Issue | Rs. 132 Cr |
| IPO Price Range | Rs. 114-120 |
| Min. Investment | Rs. 15,000 |
| Offer for Sale (OFS) | Rs. 337.02 Cr |
| Basis of Allotment | 24th June 2024 |
| Refunds | 25th June 2024 |
| Listing Date | 26th June 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Akme Fintrade India Limited IPO (Aasaan Loans IPO) Book Running Lead Managers –
- Gretex Corporate Services Limited
Akme Fintrade India Limited IPO (Aasaan Loans IPO) Registrar to the offer –
The registrar for the Akme Fintrade India Limited IPO (Aasaan Loans IPO) is Bigshare Services Private limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company proposes to utilize the Net Proceeds towards the funding of the following objects:
- Re-payment or pre-payment, in full or in part, of certain borrowings availed by the Company.
- Infusion of funds in certain of our Subsidiaries, namely Signatureglobal Homes, Signature Infrabuild, Signatureglobal Developers, and Sternal Buildcon for re-payment or pre-payment, in full or in part, of certain borrowings availed by the Subsidiaries.
- Inorganic growth through land acquisitions and general corporate purposes.
Key Performance Indicator –
The market capitalization of Akme Fintrade India Limited is Rs 2103.94 Cr.
KPI as of December 31, 2023.
| Earning Per Share (EPS): | ₹3.87per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 5.81% |
| PAT Margin(%) | 22.93 |
Financial Status –
Akme Fintrade India Limited’s revenue increased by 3.06% and profit after tax (PAT) rose by 283.5% between the financial year ending with March 31, 2023 and March 31, 2022.
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 69.51 | 67.44 | 86.17 |
| EBIDTA | 67.90 | 43.28 | 48.27 |
| PAT | 15.80 | 4.12 | 16.30 |
| Total Assets | 390.50 | 374.01 | 455.39 |
| Total Borrowings | 185.71 | 237.16 | 325.13 |
Evaluation of P/E Ratio
The P/E Ratio of Akme Fintrade India (Aasaan Loans) Ltd IPO is not available.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 26.28.
Peers of Akme Fintrade India Limited –
Akme Fintrade India Ltd peer comparison with similar listed entities. (As on March 31, 2023)
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E | RoNW (%) | P/BV | Financial statements |
|---|---|---|---|---|---|---|
| Akme Fintrade India Ltd | 5.85 | 64.65 | 7.72 | |||
| Mas Financial Services Ltd | 37.18 | 277.83 | 26.47 | 13.55 | 3.54 | Consolidated |
| Shriram Finance Limited | 160.54 | 1162.12 | 14.73 | 13.82 | 2.03 | Consolidated |
| Cholamandalam Investment And Finance Company Ltd | 32.44 | 174.52 | 33.52 | 18.58 | 6.22 | Consolidated |
| Arman Financial Service Limited | 110.47 | 430.61 | 20.99 | 25.65 | 5.23 | Consolidated |
| CSL Finance Limited | 22.02 | 174.85 | 22.70 | 12.59 | 2.78 | Consolidated |
Akme Fintrade India Limited IPO (Aasaan Loans IPO) Strengths –
- It’s a stable business with a proven lending model for vehicle and small business financing.
- The company has a strong, dedicated, and experienced management team.
- AKME Fintrade has a deep understanding and knowledge of the target audience and industry.
Akme Fintrade India Limited IPO (Aasaan Loans IPO) Weakness –
- A pandemic-like situation can affect the company’s operational and financial performance.
- The company promoters are involved in certain legal proceedings.
- It’s a capital-intensive business and requires a continuous supply of capital to operate.
Akme Fintrade India Limited IPO (Aasaan Loans IPO) GMP Today –
Aasaan Loans IPO last GMP is ₹30, last updated Jun 22nd 2024. With the price band of 120.00, Aasaan Loans IPO’s estimated listing price is ₹150(cap price + today’s GMP). The expected percentage gain/loss per share is 25.00%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
The company is operating in financial services segment which is highly competitive and fragmented one. It also has ever changing regulatory norms. Based on FY24 annualized earnings, the issue is aggressively priced.
Also, Company has previously experienced negative cash flow and could continue doing so in the years to come, which might have a significant negative impact on its business, prospects, financial condition, cash flows, and results of operations.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
There is no harm in skipping this pricey offer. Experienced investors may apply in the upcoming IPO after thorough evaluation of all the factors to gain rewards.
For all such latest information on upcoming IPOs, keep visiting our website.
