Akme Fintrade India Limited IPO: Get Date, Price, Review and Details

Introduction:

The Akme Fintrade India Limited NBFC was incorporated in the year 1996 and operates in rural and semi-urban areas in India. The company provides Vehicle Finance and Business Finance products to small business owners across the 4 Indian states (Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat) with 12 branches and over 25 points of sale. It has a customer base of over 2,00,000.

The company lend a finance for the purchase of two-wheelers and three-wheelers for salaried professionals and self-employed. Its products are branded under the “Aasaan” franchise and their offerings include Aasaan loan against property, Aasaan Saral Udyog loan, Aasaan vehicle loans, Aasaan farm equipment loan, and Aasaan Mahila Udyog loan.

IPO Details:

Objectives of Issue:

• The primary objective of the Issue is augmenting the capital base for a company to fulfill future capital requirements which are anticipated to arise as a result of the expansion.

• A portion of the proceeds from the Issue will be used towards meeting Issue related expenses.

Key Strengths:

• High Margins – The company is operating on a high net interest margin also it has been able to maintain a high return on equity & high return on assets.
• Business Expansion Opportunity – The rural and semi-urban areas where the company is offering are underpenetrated leaving ample space for business expansion.

Risks:

• Highly competitive industry – The company is operating in a highly competitive business industry. The company is likely to face challenges in retaining profitability while simultaneously expanding its customer base.
• High NPA - The company has a high level of non-performing assets, maintaining profitability along with reduction in debt will be a big challenge for the company.
• Regulatory Risk - It operates in a regulated industry and lending business norms are affected by the regulator's changes in rules, regulations.

Financial Snapshot:

                                                                                                                                             (Rs. In Lakhs)