Akme Fintrade IPO Opens For Public Bids; Experts Shares View
Listing is expected at around Rs 150 to 160 per share, resulting in a listing gain of approximately 25 per cent, says expert
Akme Fintrade also known as Aasaan Loans opened its initial public offering (IPO) for the public subscription on 19 June in an attempt to raise Rs 132 crore.
The IPO consists exclusively of fresh issues of Rs 132 crore with a price band of Rs 114 to Rs 120.
Retail investors can bid for the maximum of 13 lots, while for the 1 lot of 125 shares with the minimum investment of Rs 15,000.
Akme Fintrade IPO opened on 19 June and will close on 21 June followed by allotment on 24 June. Subsequently, the IPO will list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 26 June.
Gretex Corporate Services is the book running lead managers, while Bigshare Services is the registrar to the offer.
Analyst Note
“On the upper price band, the issue is valued at a price to earnings (PE) of 20.5 times based on FY2023 earnings. Though the prospect for the company’s business segments look promising, we would look for more clarity and confirmation on the financial performance trajectory. Therefore, ‘Subscribe’ for high risk-appetite investors to the issue for listing gains is recommended,” Parth Shah, Research Analyst, StoxBox.
“Akme Fintrade India, a non-banking financial company (NBFC) with over 20 years of experience in lending to rural and semi-urban areas in India. It operates in the financial services segment, which is highly competitive and fragmented. Based on FY24 earnings, the issue is aggressively priced. Listing is expected at around Rs 150 to 160 per share, resulting in a listing gain of approximately 25 per cent,” said Amit Goel, Co-Founder and Chief Global Strategist, Pace 360.
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.
