Akme Fintrade India Ltd

About Akme Fintrade India Ltd  Incorporated in 1996, Akme Fintrade (India) Limited is a non-banking finance company (NBFC). It mainly operates in rural and semi-urban geographies with a portfolio of various loans catering to vehicle and business finance.  Its key borrowers are individuals seeking vehicle financing, including used commercial vehicles, 2-wheeler loans, used 2-wheeler loans. It also provides business financing to small business owners, SMEs or MSMEs (Micro, Small and Medium Enterprises).  Till date, the company has served over 2,00,000 customers with its presence in the four states of Rajasthan, Maharashtra, Madhya Pradesh and Gujarat. Its registered office is located in Udaipur, Rajasthan. The company has 12 branches and over 25 points of presence including digital and physical branches.  It carries out its operations using a hub-and-spoke model with the registered office, 6 branches in Rajasthan and 6 in Mumbai, Maharashtra. This model improves efficiency and decreases overall costs. It also has long term relationships with its lenders, mainly, 3 public sector banks, 2 private sector banks, and 12 other financial institutions as of 31 December 2023. On the other hand, its distribution network includes an in-house sales team.  The company has also entered into co-lending agreements with other financial institutions to access a wider credit market. Some of them include Bajaj Finance, Capital India Finance, MAS Financial Services and Shriram Finance Company.  The company’s total asset under management (AUM) stood at ₹379.4 crore as of 31 December 2023. The fresh disbursement has grown steadily from ₹53.7 crore in FY21 to ₹78.3 crore in FY23. The company’s financial and business growth has been inconsistent, mainly attributed to the far-reaching effects of the COVID-19 pandemic on the NBFC sector.  However, NBFCs’ AUM is expected to grow in single digits (between 7-8%) in FY24 due to their continued focus on extending credit facilities to consumers in segments where bank penetration is relatively low.  Also, a strong understanding of customer needs, leveraging technology for improved efficiency and experience, customised product offerings, co-lending arrangements, wider reach, and efficient risk management are some of the factors fuelling the aggressive growth of NBFCs in India, which could benefit the company.  And now, Akme Fintrade (India) Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹132 crore comprising entirely of the fresh issue. The money raised from the fresh issue will be utilised to augment the capital base to meet future capital requirements. Its shares will be listed on the NSE and BSE.  Here are key details about the Akme Fintrade India Ltd IPO:     Company Name  Akme Fintrade India Ltd Limited   Company Type  Private    Company Established On  1996   Akme Fintrade India Ltd IPO Opening Date  19th June 2024    Akme Fintrade India Ltd IPO Closing Date  21st June 2024   Akme Fintrade India Ltd IPO Allotment Status  24th June 2024    Credit of Shares to the Demat Account  25th June 2024   Akme Fintrade India Ltd IPO Listing Date  26th June 2024    Akme Fintrade India Ltd IPO Face Value  ₹10 per share   Akme Fintrade India Ltd IPO Lot Size  125 shares    Akme Fintrade India Ltd IPO Issue Size  Approx ₹132 crore   Akme Fintrade India Ltd IPO to be Listed on  BSE, NSE    Akme Fintrade India Ltd IPO Price band  ₹114 – ₹120 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q3FY24    Revenue  ₹ 86.1 crore  ₹ 67.4 crore  ₹ 69.5 crore  53.4 crore    Net Profit  ₹ 16.3 crore  ₹ 4.12 crore  ₹ 15.8 crore  12.2 crore              Here’s a quick look at Akme Fintrade India Ltd IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Proven capabilities and strong focus on the rural and semi-urban areas which is a highly under-served market for formal banking services in terms of access, availability, and suitability of products and services.  Well established vehicle finance and small businesses lending business with around 32,771 outstanding loans as of 31 December 2023.  Customer centric approach with products designed in a simple to understand manner, relationship managers at every step, and local hiring.  Diversified funding base including short and medium-term funding sources such as loans from banks and financial institutions, NCDs, and ECBs.  Robust underwriting process and risk management policies such as comprehensive evaluation of repayment capacity, detailed cash flows analysis of the customer, group training sessions, knowledge testing, and utilization of credit bureau data.  Improved efficiency because of the hub and spoke business model where branches are the hubs and spokes are the smaller locations having digital presence in Tier 3 and Tier 4 cities.   Risks and threats   Quality of its loan portfolio may be impacted due to higher levels of non-performing assets (NPAs) as some customers defaulted in their repayments during the COVID-19 pandemic.  Might face an asset-liability mismatch potentially affecting its liquidity and profitability.  Has consistently experienced negative cash flows from financing activities between FY21 and FY23 and from investing activities in FY23.  Operates a capital intensive business and disruption in sources of capital could have an adverse effect on business.  Affected by volatility in interest rates for both lending and treasury operations, which affects its profitability.  Faces competition from public sector banks, private sector banks (including foreign banks), small finance banks, financial institutions and other NBFCs who are active in business and vehicle finance.  Has experienced decline in revenue in FY22 due to policies related to the COVID-19 pandemic.            Akme Fintrade India Ltd IPO details  |Akme Fintrade India Ltd IPO date  According to the offer document filed by the company with the SEBI, the Akme Fintrade (India) IPO’s opening date – in other words, the Akme Fintrade (India) IPO launch date – will be 19th June 2024. The Akme Fintrade (India) IPO closing date is 21st June 2024. After this, investors will be updated about the allotment status on 24th June 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 25th June 2024. The Akme Fintrade (India) IPO listing date is 26th June 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Akme Fintrade India Ltd IPO Price Band  The entire IPO is a fresh issue. The Akme Fintrade (India) IPO price band has been set between ₹114 and ₹120 per share. Interested investors can choose a price within this band to apply for the IPO.  The Akme Fintrade (India) IPO listing price will be determined on 26th June 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Akme Fintrade India Ltd IPO Lot size  The Akme Fintrade (India) IPO details have been declared. The Akme Fintrade (India) IPO lot size is set at 125 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Akme Fintrade (India) IPO issue size is approx ₹132 crore.           How to pre-apply for the Akme Fintrade India Ltd IPO?  You can pre-apply for the Akme Fintrade India Ltd IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Akme Fintrade India Ltd IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Akme Fintrade India Ltd IPO?  If you are interested in this investment opportunity but unsure how to apply for the Akme Fintrade India Ltd IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Akme Fintrade India Ltd IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Akme Fintrade India Ltd IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Akme Fintrade India Ltd IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Akme Fintrade India Ltd IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Akme Fintrade India Ltd IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Akme Fintrade India Ltd IPO  To apply for the Akme Fintrade India Ltd IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Akme Fintrade India Ltd IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Akme Fintrade India Ltd IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.