Akme Fintrade IPO Gets A Tepid Debut; Lists With 6% Premium

Akme Fintrade also known as Aasaan Loans initial public offering (IPO) received a tepid response on the Dalal Street as the issue listed with merely 6 per cent premium at Rs 127 against its issue price of Rs 120. 

During its subscription phase, Qualified Institutions placed bids over 28 times, whereas retail subscription stood at nearly 45 times. Overall, the issue was subscribed by 45.49 times.

The IPO consisted exclusively of fresh issues of Rs 132 crore with a price band of Rs 114 to Rs 120. 

Gretex Corporate Services was the book running lead managers, while Bigshare Services was the registrar to the offer.  

Analyst Note

Amit Goel, Co-Founder and Chief Global Strategist, Pace 360 advised investors to stay away from long-term investment in this stock. However, in the short term, it might remain range-bound.

IPO Objectives

Company intends to utilise the proceeds of Rs 132 crore towards funding future capital requirements which are anticipated to arise as a result of the expansion of the business and assets along with working capital requirement. 

The proceeds will also be used for general corporate purposes. Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders. 

Firm’s Financials

The firm registered revenue of Rs 69.75 crore in FY23, compared to Rs 67.50 crore in FY22. 

The firm’s profit after tax (PAT) increased to Rs 15.8 crore in FY23 compared to Rs 4.12 crore in FY22. 

Overall, revenue and PAT increased by 3 per cent and 283.5 per cent respectively.