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

Akme Fintrade IPO: The initial public offering of the non-banking finance company, Akme Fintrade (India) Ltd, is all set to hit the D-Street next week. Akme Fintrade IPO price band has been set in the range of ₹114 to ₹120 apiece of face value of ₹10 each. The Reserve Bank of India (RBI) registered NBFC will kick-start its subscriptions from Wednesday, June 19, and conclude on Friday, June 21. The anchor investor bidding date had been set for Tuesday, June 18.

The floor price is 11.40 times of the face value and the cap price is 12 times of the face value. The price to earning ratio at the floor price is 19.49 times and at the cap price is 20.51 times. The Akme Fintrade IPO lot size is 125 equity shares and in multiples of 125 equity shares thereafter.

The NBFC is registered with the RBI as a non-systemically important non-deposit taking firm and has over two decades of lending expertise in rural and semi-urban areas of India. The company's primary focus is on financing solutions for rural and semi-urban populations in order to meet their needs and goals. The company offers Vehicle Finance and Business Finance Products to small business owners.

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The Akme Fintrade IPO has reserved 50% of the shares in the public offering for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 35% for retail investors. The employees segment has been allocated 5,50,000 equity shares.

Tentatively, the Akme Fintrade IPO basis of allocation of shares will be concluded on Monday, June 24, and the business will commence refunds on Tuesday, June 25, with shares credited to allottees' demat accounts the same day. Akme Fintrade's share price is expected to be posted on the BSE and NSE on Wednesday, June 26.

The company's listed peers are MAS Financial Services (with a P/E of 26.47), Shriram Finance (with a P/E of 14.73), Cholamandalam Investment and Finance Company (with a P/E of 33.52), Arman Financial Service (with a P/E of 20.99), and CSL Finance (with a P/E 22.70). 

Akme Fintrade India Ltd's revenue scaled by 3.06%, while profit after tax (PAT) increased by 283.5% between March 31, 2023 and March 31, 2022.

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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.

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Akme Fintrade IPO GMP today

Akme Fintrade IPO GMP or grey market premium is +5. This indicates Akme Fintrade share price were trading at a premium of ₹5 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 ₹125 apiece, which is 4.17% higher than the IPO price of ₹120.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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