Akme Fintrade India (Aasaan Loans) IPO: Review, Date & GMP

Akme Fintrade India (Aasaan Loans) Ltd IPO: Complete Overview

Dear readers today we are ready with IPO details of Akme Fintrade India (Aasaan Loans) Ltd IPO. Akme Fintrade India (Aasaan Loans) Ltd, founded in 1996 is a non-banking financial corporation (NBFC) with more than 20 years of expertise lending to rural and semi-urban areas in India.

The organization primarily offers loan solutions that meet the requirements and aspirations of rural and semi-urban communities. It offers Vehicle Finance and Business Finance Products to small business owners. The company operates in rural and semi-urban parts of four Indian states: Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat. It has a registered office in Udaipur, Rajasthan, and a corporate office in Mumbai, Maharashtra. It has served over 200,000 consumers through 12 locations and over 25 points of presence, which include both digital and physical branches.

The company compensates the cost of new two- and three-wheelers, including scooters, motorbikes, and auto rickshaws, for paid professionals and self-employed non-professionals.

As of December 31, 2023, the company employed 125 permanent employees and focused on their overall well-being. 

The company is all set to offer its IPO on June 19, 2024, So whoever is interested, can take part in the upcoming Akme Fintrade India (Aasaan Loans) Ltd IPO.

Now we will discuss this IPO's offerings in detail below. 

 

Akme Fintrade India (Aasaan Loans) Ltd IPO Overview

Akme Fintrade India (Aasaan Loans) Ltd IPO is a Book Built Issue of 132.00 crores. The issue is a total fresh issue of 1.1 crore shares valued at up to Rs.132.00 Cr. The IPO will open for subscribers on June 19, 2024, and close on June 21, 2024.  Akme Fintrade India (Aasaan Loans) Ltd IPO will be listed on BSE and NSE with a tentative listing date fixed as Wednesday, June 26, 2024. The price of each share is Rs.114 to Rs.120.

 

 

Company Financial

This is a synopsis of Akme Fintrade India (Aasaan Loans) Ltd IPO's financial data for the financial year that concluded on March 31, 2023, and 31 March 2022.

• Akme Fintrade India (Aasaan Loans) Ltd's revenue ranges from Rs.1 to 100 crore.

• The company's net revenue has grown by 3.06%.

• The company's PAT rose by 283.5%.

(Amount in Crore)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	417.96	390.50	374.01
Total Revenue	53.45	69.57	67.50
PAT	12.25	15.80	4.12
Net worth	217.01	204.78	136.84
Reserve & Surplus	185.34	173.11	115.03
Total Borrowings	195.19	177.76	230.06

 

 

Revenue Bifurcation

Below are the facts presented in different activities of the company. Let’s have a view on it for a better understanding of the company’s performance.

Cash Flow from Operating Activities:

Net cash flow from operating activities decreased to 2,361.30 lacs on 31 March 2023, from 6,310.24 lacs on 31 March 2022.

Cash Flow from Investing Activities:

Net cash involved in investing activities increased to 1,496.34 lacs on 31 March 2023, from 159.66 lacs on 31 March 2022.

Cash Flow from Financing Activities:

Net cash flow involved in financing activities decreased to 201.64 lacs on March 31, 2023, from 7455.05 lacs on March 31, 2022.

 

State-wise Revenue Bifurcation

State	March 2021 (% of Interest Income)	March 2022 (% of Interest Income)	March 2023 (% of Interest Income)
Gujarat	8.05	8.73	5.47
Madhya Pradesh	5.82	5.72	6.24
Maharashtra	2.60	1.84	3.90
Rajasthan	83.55	83.72	84.39
Total	100.00%	100.00%	100.00%

 

 

Graphical Representation of Statewise Revenue Breakdown

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to expand the company's capital base to meet future capital requirements that are expected to occur as a result of business and asset expansion. Furthermore, some of the proceeds from the issue will be utilized to fund Issue-related expenses.

 

Peers of Akme Fintrade India (Aasaan Loans) Ltd IPO

(Rs. in Crores)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E
MAS Financial Services Limited	10	37.18	20.81
Shriram Finance Limited	10	160.54	8.87
Cholamandalam Investment and Finance Company Limited	2	32.44	32.92
Arman Financial Service Limited	10	110.47	17.16
CSL Finance  Limited	10	22.02	11.95

 

Evaluation

The IPO issue price is Rs.114 to Rs.120 for each share.

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.

Particulars	P/E Ratio
Highest	29.88
Lowest	22.67
Average	26.28

 

 

IPO's Strengths 

• Proven execution expertise with a solid rural and semi-urban focus.

• Well-established vehicle finance and small business loan business.

• A stable and experienced management team.

• Customer-centric strategy and an extensive knowledge of target customers

• Access to diverse sources of capital and effective asset liability management.

• Strong underwriting procedures and risk management policies

 

IPO’s Weaknesses 

• Any downward revision in the company’s credit ratings could adversely affect its capacity to service its debts and raise financing in the future, thereby harming its operational results and financial conditions.

• The company relies heavily on its Business Loans, and any bad developments in this sector, or in the other industries in which its Business Loan clients operate, might harm its business, operations, financial condition, and cash flows.

• Certain statutory and regulatory licenses and permissions are required to perform its business, and any failure or omission to obtain, maintain, or renew these licenses and approvals on time, or at all, might harm its business and operations.

• The company may encounter asset-liability mismatches, which could affect our liquidity and, consequently

 

IPO GMP Today

The Latest GMP of Akme Fintrade India (Aasaan Loans) Ltd IPO is Rs.16.

 

Akme Fintrade India (Aasaan Loans) Ltd IPO Timetable (Tentative)

Akme Fintrade India (Aasaan Loans) Ltd IPO is scheduled from June 19 to June 21, 2024, with allotment on June 24, refund initiation on June 25, and listing on June 26, 2024.

Events	Date
IPO Opening Date	June 19, 2024
IPO Closing Date	June 21, 2024
IPO Allotment Date	June 24, 2024
Refund initiation	June 25, 2024
IPO Listing Date	June 26, 2024

 

Akme Fintrade India (Aasaan Loans) Ltd IPO Details 

Akme Fintrade India (Aasaan Loans) Ltd IPO with a face value of Rs.10 per share is set to start on June 19 and close on 21 June and will offer a fresh issue size of 11,000,000 shares (aggregating up to Rs.132.00 Cr).

IPO Opening & Closing Date	June 19, 2024 to June 21, 2024
Face Value	Rs.10 per share
Issue Price	Rs. 114 to Rs. 120
Lot Size	125 shares
Price of 1 lot	Rs. 15000
Issue Size	11,000,000 shares (aggregating up to Rs. 132 Cr)
Offer for sale	-
Fresh issue	11,000,000 shares (aggregating up to Rs. 132 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

 

Akme Fintrade India (Aasaan Loans) Ltd IPO Lot Details 

Akme Fintrade India (Aasaan Loans) Ltd IPO allows retail investors to invest in a minimum and maximum of 1 lot (125 shares) at Rs.1500 and 13 lot (1625 shares) at Rs.1,95,000 respectively while for S-HNI investors, the minimum lot is 14 (1750 shares) at Rs.2,10,000, and the maximum is 66 lot (8250 shares) at Rs.9,90,000.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lot
S-HNI (Min)	14 lot
S-HNI (Max)	66 lot
B-HNI (Min)	67 lot

 

Akme Fintrade India (Aasaan Loans) Ltd IPO Reservation

QIB share Portion	50%
Retail Investors’ Share Portion	35%
NII (HNI) shares offered	15%

 

Promoters and Management of Akme Fintrade India (Aasaan Loans) Ltd IPO

• Nirmal Kumar Jain

• Manju Devi Jain

• Dipesh Jain 

• Nirmal Kumar Jain HUF

 

Akme Fintrade India (Aasaan Loans) Ltd IPO Lead Managers

• Gretex Corporate Services Limited

 

 

Dividend Policy

The company has not paid any Dividends in the last 3 Fiscals.

 

Conclusion

Akme Fintrade India (Aasaan Loans) Ltd IPO 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.

So if you’re looking to invest in its coming IPO, do an extensive study on the firm, its finances, commercial prospects, and industry trends before investing in its IPO. 

We believe this blog would be very beneficial to you if you are considering investing in this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If the information and statistics offered in this blog pique your interest, you may want to consider participating and benefiting from the advantages it will offer the market. 

However, before making any decisions in this regard, we suggest our potential readers to speak with their financial counselor.

For all such latest information on upcoming IPOs, keep visiting our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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