Akme Fintrade (India)
Mainboard₹132 Cr issue
+4.75%
Listing gain over issue price
Issue size
₹132 Cr
1 lot at cut-off
₹15,000
Lot size
125shares
Open
19 Jun 2024
Close
21 Jun 2024
Allotment
24 Jun 2024
Listing
26 Jun 2024
Listing performance
Issue price
₹120
Listed at
₹125.70
Listing-day close
₹133.35
Latest price
₹7.19
Close on 23 Oct 2026
Listing gain
+4.75%
Return since issue
-40.08%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Jun 2024 – 21 Jun 2024
- Listing date
- 26 Jun 2024
- Face value
- ₹10 per share
- Issue price
- ₹120 per share
- Lot size
- 125 shares
- Total issue size
- ₹132 Cr
- Promoter holding
- 56.01% → 41.57% pre-issue → post-issue
- ISIN
- INE916Y01027
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- AKME Business Centre (ABC), 4-5 Subcity Centre, Savina Circle opp, Krishi Upaz Mandi, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 31,35,000 | — | — |
Application size
Minimum 125 shares per lot, in multiples, at ₹120
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 125 | ₹15,000 |
| Retail (max) | 13 | 1,625 | ₹1,95,000 |
| S-HNI (min) | 14 | 1,750 | ₹2,10,000 |
| S-HNI (max) | 66 | 8,250 | ₹9,90,000 |
| B-HNI (min) | 67 | 8,375 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
31,35,000
Anchor portion
₹37.62 Cr
at ₹120 per share
Valuation and performance
Valuation at offer price
₹120 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.87 | — |
| P/E (×) | 31.01 | — |
Key performance indicators
Latest reported period
- Return on net worth
- 5.81%
- Debt / equity
- 2.49
- PAT margin
- 22.93%
- NAV per share
- ₹68.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Akme Fintrade (India)
Akme Fintrade (India) Limited is an NBFC incorporated in 1996 and registered with the Reserve Bank of India as a Non-systemically important non-deposit taking company. The company has over two decades of lending experience focused on rural and semi-urban geographies in India. It provides Vehicle Finance and Business Finance Products to small business owners. The company operates through 12 branches and over 25 points of sale (including digital and physical channels) across Rajasthan, Maharashtra, Madhya Pradesh and Gujarat, having served over 200,000 customers. The company generates revenue primarily through interest income on loans disbursed. As of December 31, 2023, the company's loan book stood at ₹37,946.28 lakhs, with 61.21% in rural & semi-urban areas and 38.79% in urban areas.
Company Analysis
from RHPAkme Fintrade is a non-banking finance company providing rural and semi-urban centric lending solutions including vehicle finance and business finance across four Indian states.
Akme Fintrade (India) Limited is an NBFC incorporated in 1996 and registered with the Reserve Bank of India as a Non-systemically important non-deposit taking company. The company has over two decades of lending experience focused on rural and semi-urban geographies in India. It provides Vehicle Finance and Business Finance Products to small business owners. The company operates through 12 branches and over 25 points of sale (including digital and physical channels) across Rajasthan, Maharashtra, Madhya Pradesh and Gujarat, having served over 200,000 customers. The company generates revenue primarily through interest income on loans disbursed. As of December 31, 2023, the company's loan book stood at ₹37,946.28 lakhs, with 61.21% in rural & semi-urban areas and 38.79% in urban areas.
Non-Banking Finance (NBFC)Vehicle FinancingBusiness Finance
Objects of the Issue
- Augmenting the capital base of our Company [●] lakhs p.27
- Not specified in this section of the document p.85
Issue Structure
- Total Issue
- Up to 1,10,00,000 Equity Shares aggregating up to ₹ [●] lakhs
- Fresh Issue
- Fresh Issue of up to 1,10,00,000 Equity Shares
- Offer for Sale
- Not Applicable
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
The company earns revenue through interest income on Vehicle Finance and Business Finance loans disbursed to customers in rural and semi-urban markets. It funds these loans through borrowings from banks, financial institutions, and other sources. Revenue from operations for the nine months ended December 31, 2023 was ₹5,340.49 lakhs, with Business Finance comprising 79.23% and Vehicle Loans comprising 20.77% of the loan book.
Business Segments
Provides vehicle financing for two-wheelers and commercial vehicles
Provides business loans to small business owners in rural and semi-urban sectors
Provides financing for commercial vehicles through hypothecation of vehicles as collateral; represents 27,482 customers as of December 31, 2023
Provides term loans and other financing to small business owners secured by movable and immovable assets; represents 5,289 customers as of December 31, 2023
Financing for purchases of two-wheelers, three-wheelers, and used commercial vehicles (light and heavy commercial vehicles) to individuals, transport operators, small businesses, and self-employed individuals
Secured loans for business purposes to small and medium size enterprises, businessmen, traders, manufacturers, and self-employed professionals, typically secured by completed and largely self-occupied residential and commercial property
Financing of three-wheeler and four-wheeler vehicle purchases for customers
Personal lending to customers
Lending against immovable properties
Lending against property as security
Financing of vehicles including Used Commercial Vehicle, 2 Wheeler Loans, and Used 2 Wheeler Loans
Financing solutions for small business owners
SWOT Analysis
Strengths
- • Over two decades of lending experience in rural and semi-urban markets(p.26)
- • Track record of consistent customer acquisition and retention with efficient low-cost expansion(p.26)
- • Geographic presence across four Indian states with 12 branches and over 25 points of sale serving 200,000+ customers(p.26)
- • Improved capital adequacy position with CRAR of 42.02% significantly above RBI requirement of 15%(p.49)
- • Strong improvement in leverage ratio from 3.67 to 0.88, demonstrating reduced financial risk(p.38)
- • Digital lending platform www.aasaanloans.com under development with UAT completed for two-wheeler products(p.26)
- • Collateral-based lending reduces credit risk exposure(p.56)
- • Established customer base in underserved segments(p.56)
- • Diversified loan portfolio across business and vehicle finance(p.56)
- • Proven execution in rural and semi-urban lending with long operational history(p.238)
- • Established vehicle finance and small business lending platform across four states(p.238)
- • Experienced management with deep industry expertise and proven resilience(p.239)
- • Deep customer understanding and customer-centric product design(p.239)
- • Diversified funding sources and improved capital structure(p.240)
- • Robust underwriting and multi-level credit risk management framework(p.240)
- • Hub-and-spoke model enabling low-cost market penetration(p.240)
- • Established NBFC with regulatory compliance framework(p.307)
- • Growing AUM and loan portfolio with geographic expansion(p.263)
- • Strong management team with chartered accountant leadership(p.270)
Weaknesses
- • Higher NPA levels compared to several peer companies, creating credit risk exposure(p.38)
- • Past non-compliance with RBI norms regarding shareholding changes and management approvals(p.39)
- • Concentration of business in Rajasthan state, representing 75.56% of interest income as of December 31, 2023(p.42)
- • Past issuances that may not be compliant with Companies Act provisions regarding public offerings(p.41)
- • Untraceable secretarial records including Form 2 for 1996 allotment and multiple Forms 66 and 20B(p.43)
- • Low credit ratings at ACUITE BBB/Stable may increase borrowing costs and restrict capital access(p.43)
- • History of delay in debt servicing with multiple instances across financial years 2021-22 and 2022-23(p.45)
- • Multiple SEBI Listing Regulations non-compliance instances with penalties paid totaling ₹53,760(p.51)
- • High NPA ratio, particularly in business loans(p.56)
- • Dependence on volatile external funding sources(p.55)
- • High employee attrition rate(p.60)
- • Significant cash collections expose operations to fraud risk(p.61)
- • Customer base new to credit has higher default risk(p.59)
- • Unregistered logo limits trademark protection(p.64)
- • Contingent liabilities from corporate guarantees(p.61)
- • High concentration of loan portfolio in single state (Rajasthan 69.39%)(p.238)
- • Declining customer base and asset under management volatility(p.239)
- • Small branch network with limited geographic presence(p.239)
- • High leverage ratio previously (though improving)(p.236)
- • Volatile profitability with significant year-on-year fluctuations(p.236)
- • Delays in payment obligations to multiple lenders(p.266)
- • Concentration among few lenders for borrowing(p.301)
- • High finance costs relative to interest income(p.302)
- • Significant impairment provisions on financial instruments(p.302)
- • Significant concentration of loans in rural areas with weak financial literacy(p.312)
- • Rising impairment provisions on loan portfolio(p.318)
- • Geographic concentration of loan exposure(p.343)
Opportunities
- • NBFC sector expected to grow 7-8% in FY24 with increasing retail credit demand from under-penetrated segments(p.27)
- • Strong NBFC market position in vehicle financing with 65% market share in two-wheeler loans and 62% in CV financing(p.27)
- • Opportunity to expand beyond Rajasthan into new geographic markets in Maharashtra, Madhya Pradesh and Gujarat(p.42)
- • Growing demand for credit from retail segments particularly in housing loans and vehicle loans segments(p.27)
- • Technology infrastructure investments driving NBFC growth with increasing ease of internet access(p.27)
- • Strong recovery from COVID-19 with fresh loan disbursements increasing to ₹7,834 lakhs in Fiscal 2023(p.38)
- • Government initiatives supporting small business finance(p.67)
- • Growth in India's small business finance industry(p.67)
- • Large untapped rural non-agricultural credit market with 61% of rural workforce outside farming(p.226)
- • Strong two-wheeler financing opportunity in rural markets expected to reach 1.2 crore units annually by FY 2027(p.227)
- • Microcredit market opportunity with INR 2.48 lakh crore outstanding as of March 2022(p.227)
- • High-potential states with 40%+ non-institutional credit market share(p.242)
- • Digital lending platform rollout enabling wider market reach with lower costs(p.240)
- • Institutional credit penetration in rural markets still only 66% leaving 34% served by non-institutional agencies(p.242)
- • NBFC sector credit growing faster than bank credit (FY2023: 21% vs 20.5%)(p.213)
- • Expansion into new geographies with new loan products(p.263)
- • Access to capital markets through IPO(p.262)
- • Digital transformation initiatives(p.264)
- • Growth in asset size and classification upgrade(p.263)
Threats
- • Revenue decline experienced in Fiscal 2022 and potential for future revenue deterioration due to economic uncertainties(p.37)
- • Income-tax survey and search proceedings at company and promoter residences with potential for reassessment(p.43)
- • Litigation risk from Civil Suit alleging illegal mortgage and conspiracy to obtain loan through forged documents(p.45)
- • RBI regulatory concerns over shareholding changes and management approval violations still under examination(p.40)
- • Increased ALM risks with potential liquidity constraints if asset-liability maturity profile deteriorates(p.49)
- • Exposure to COVID-19 pandemic impacts on liquidity and borrower repayment capacity remains uncertain(p.50)
- • Dependence on continuous borrowing to fund operations vulnerable to credit market disruptions and lender reassessment(p.50)
- • Multiple restrictive covenants in debt financing agreements limiting strategic flexibility and requiring lender approvals(p.54)
- • Rising interest rates may increase customer defaults(p.57)
- • Intense competition from banks and other NBFCs(p.57)
- • Volatility in interest rates affects net interest margins(p.57)
- • NBFC sector credit concerns reduce funding availability(p.55)
- • Macroeconomic downturns reduce credit demand and increase defaults(p.66)
- • Inflation may compress operating margins(p.66)
- • Customer balance transfers to competitors reduce revenue(p.60)
- • Collateral value depreciation exposes company to losses(p.59)
- • Tightening NBFC regulations with enhanced capital and exposure limits(p.209)
- • Stricter NPA classification norms being implemented with glide path to 90 days by March 2026(p.254)
- • Intense competition from banks and other NBFCs in retail lending segment(p.251)
- • Rural market credit concentrated with moneylenders in specific states limiting growth(p.220)
- • Rising interest rates and cost of borrowing impacting margins(p.236)
- • Exposure to used commercial vehicle and two-wheeler segments with commodity-linked risks(p.224)
- • Economic cyclicality affecting rural lending with monsoon and agricultural commodity risks(p.195)
- • Regulatory restrictions on dividend declaration(p.257)
- • Restrictions on banking activities and credit availability(p.257)
- • RBI's outsourcing and risk management compliance requirements(p.257)
- • Increased regulatory scrutiny through Ombudsman scheme(p.257)
- • Foreign exchange risk from External Commercial Borrowings(p.346)
- • Interest rate risk from variable-rate borrowings(p.341)
- • Regulatory capital adequacy requirements(p.347)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nirmal Kumar Jain | Promoter | 36.02% | [●] |
| Manju Devi Jain | Promoter | 3.67% | [●] |
| Dipesh Jain | Promoter | 2.20% | [●] |
| Nirmal Kumar Jain HUF | Promoter | 4.03% | [●] |
| Nirmal Kumar Jain | Chairman and Managing Director / Promoter | — | — |
| Nirmal Kumar Jain | Founder Director/Promoter | — | — |
| Nirmal Kumar Jain | Promoter | 36.02% | — |
| Ms. Manju Devi Jain | Promoter | 3.67% | — |
| Mr. Dipesh Jain | Promoter | 2.20% | — |
| Nirmal Kumar Jain (HUF) | Promoter | 4.03% | — |
| Nirmal Kumar Jain | Promoter | — | — |
| Ashish Jain | Promoter | — | — |
Leadership
Nirmal Kumar Jain · Chairman and Managing Director
Rajni Gehlot · CFO
Manoj Kumar Choubisa · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Akme Fintrade (India) IPO FAQs
What is the lot size of Akme Fintrade (India) IPO?
The minimum lot size of Akme Fintrade (India) IPO is 125 shares. One lot costs ₹15,000 at the cut-off price.
When does Akme Fintrade (India) IPO open and close?
Akme Fintrade (India) IPO opened for subscription on 19 Jun 2024 and closed on 21 Jun 2024.
What is the listing date of Akme Fintrade (India) IPO?
Akme Fintrade (India) IPO listed on 26 Jun 2024.