IPO Details
- Issue Type: Main Board IPO
- Issue Size: ₹132.00 Crore (fresh issue)
- Price Band: ₹114 – ₹120 per share
- Minimum Order Quantity: 125 Shares
- Issue Open Date: June 19, 2024 (Wednesday)
- Issue Close Date: June 21, 2024 (Friday)
- Expected Listing Date: June 26, 2024 (Tentative)
- Lead Managers: Gretex Corporate Services Limited
IPO Timeline
| IPO Open Date: | June 19, 2024 |
| IPO Close Date: | June 21, 2024 |
| Basis of Allotment: | June 24, 2024 |
| Refunds: | June 25, 2024 |
| Credit to Demat Account: | June 25, 2024 |
| IPO Listing Date: | June 26, 2024 |
About Company
Established in 1996, Akme Fintrade India Ltd is a non-banking financial company (NBFC) specializing in lending to rural and semi-urban areas in India for over 20 years. They offer tailored lending solutions to meet the needs of these populations, focusing on Vehicle Finance and Business Finance Products for small business owners. The company operates in Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat, with offices in Udaipur and Mumbai. Serving over 200,000 customers through 12 branches and 25 points of presence, they finance new two-wheelers and three-wheelers for various customers. With 125 employees as of December 31, 2023, the company emphasizes their well-being.
- Aasaan Loans provides microloans and small business loans to individuals and small businesses in India.
- They operate through a network of branches and utilize technology to facilitate loan applications and processing.
OBJECTIVE
The company plans to use the funds raised from the Issue to increase its capital for future needs due to business expansion. Additionally, some of the proceeds will cover Issue-related costs.
POSITIVE
- Growing Microfinance Market: The Indian microfinance sector is experiencing growth, potentially creating a favorable environment for Aasaan Loans.
- Technology Integration: Utilizing technology for loan processing can improve efficiency and reach a wider customer base.
- Focus on Underbanked Segment: Catering to the underbanked population offers a large potential market for Aasaan Loans.
NEGATIVE
- Competition: The microfinance sector is crowded with established players and new entrants, making competition for borrowers fierce.
- Interest Rate Sensitivity: Aasaan Loans’ profitability is highly dependent on their ability to maintain interest rate spreads. Rising interest rates can impact borrower repayment capacity.
- Non-Performing Assets (NPAs): Managing bad loan ratios is crucial for Aasaan Loans’ financial health.
So, how does Akme Fintrade India Ltd IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 417.96 | 390.50 | 374.01 | 455.40 |
| Revenue | 53.45 | 69.57 | 67.50 | 86.79 |
| Profit After Tax | 12.25 | 15.80 | 4.12 | 16.31 |
| Net Worth | 217.01 | 204.78 | 136.84 | 130.26 |
| Reserves and Surplus | 185.34 | 173.11 | 115.03 | 108.45 |
| Total Borrowing | 195.19 | 177.76 | 230.06 | 317.82 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Revenue Growth: The company shows a steady increase in revenue (23.4% year-over-year) in the latest period (ending Dec 2023), indicating some business expansion.
- Profitability: Aasaan Loans has maintained profitability throughout the period, with Profit After Tax (PAT) increasing in the latest quarter.
Akme Fintrade India Ltd IPO Valuation :
| Earning Per Share (EPS): | ₹ 3.87 per Equity Share |
| Price/Earning P/E Ratio: | |
| Return on Net Worth (RoNW): | 5.81% |
| Net Asset Value (NAV): | ₹ per Equity Share |
Akme Fintrade India Ltd IPO – SWOT Analysis
Strengths
- Growing Microfinance Market: The Indian microfinance sector is experiencing significant growth, creating a favorable environment for Aasaan Loans to expand its customer base.
- Focus on the Underbanked Segment: Aasaan Loans caters to the underbanked population in India, offering financial services to a large and potentially underserved market.
- Technology Integration: Utilizing technology for loan processing and customer outreach can improve operational efficiency, reduce costs, and facilitate faster loan approvals.
- Established Branch Network: A network of branches provides a physical presence for customer interaction and loan collections, potentially building trust and brand recognition.
Weaknesses
- High Competition: The microfinance sector in India is highly competitive, with numerous established players and new entrants vying for market share.
- Interest Rate Sensitivity: Aasaan Loans’ profitability is highly dependent on their ability to maintain interest rate spreads. Rising interest rates can put pressure on borrower repayment capacity and potentially lead to defaults.
- Non-Performing Assets (NPAs): Effective management of NPAs is crucial for Aasaan Loans’ financial health. Stringent loan disbursement processes and efficient collection mechanisms are essential to minimize bad loans.
- Limited Product Portfolio: If Aasaan Loans primarily focuses on microloans and small business loans, they might miss out on potential growth opportunities from offering a wider range of financial products or services.
Opportunities
- Expanding Product Portfolio: Aasaan Loans can explore offering additional financial products such as savings accounts, micro-insurance, or money transfer services to increase customer engagement and revenue streams.
- Geographical Expansion: With a growing market, Aasaan Loans can consider expanding their branch network to new regions in India to reach a wider customer base.
- Leveraging Technology: Aasaan Loans can further leverage technology for data analytics to improve risk assessment, customer targeting, and loan collection processes.
Threats
- Economic Downturns: During economic slowdowns, borrowers might face repayment difficulties, potentially increasing NPAs and impacting Aasaan Loans’ profitability.
- Regulatory Changes: Stringent regulations from the government or financial authorities can increase compliance costs for Aasaan Loans and potentially restrict their lending practices.
- Technological Disruption: Emerging technologies in the financial services sector could lead to new competitors or disrupt Aasaan Loans’ current business model if they fail to adapt.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some potential peer groups to consider when analyzing Stanley Lifestyles:
Peers:
- Mundra Financial Services Limited: A leading microfinance company with a large branch network and diversified loan product portfolio.
- Bajaj Finserv Limited: A large financial services company with a subsidiary, Bajaj Finance Limited, that offers microloans and small business loans.
- Satin Creditcare Network Limited: A microfinance company with a focus on serving women entrepreneurs in rural and semi-urban areas.
Akme Fintrade India Ltd IPO GMP
- Grey market premium as on DD-MM-YYYY = Rs / Share
Disclaimer:
- IPO Grey Market Premium ( Akme Fintrade India Ltd IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Akme Fintrade India Ltd IPO
🔴 Live Subscription Status 🔴
21/06/2024 10:00 AM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | ||||
| Non Institutional Investors(NIIs) | ||||
| Retail Individual Investors(RIIs) | ||||
| Total |
FINAL TAKEAWAY
✅ Avoid
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