Akme Fintrade India Lists at 6% Premium at Rs 127 per share on NSE!

Akme Fintrade India Ltd is a non-banking financial company (NBFC) with more than two decades of expertise in lending to rural and semi-urban areas across India, debuted on the Indian stock market today.

The stock of Akme Fintrade India settled at Rs 125.70 per share on the BSE, representing an impressive 4.75% premium over the final issue price of Rs 120 per share. Additionally, on the NSE, the company’s shares opened at Rs 127 per share, indicating a gain of 5.83%. The market capitalization on the BSE stands at around Rs 563 crore.

IPO Proceeds

The company proposes to utilize the Net Proceeds from the Issue towards augmenting the capital base of the company to fulfill its future capital requirements, which are anticipated to arise as a result of the expansion of the business and assets. Further, a portion of the proceeds from the Issue will be used towards meeting Issue-related expenses.

Business Overview

Established in 1996, Akme Fintrade India Ltd is a non-banking financial company (NBFC) with more than two decades of expertise in lending to rural and semi-urban areas across India. Specializing in customized lending solutions tailored to meet the specific needs of rural and semi-urban populations, the company focuses on Vehicle Finance and Business Finance Products for small business proprietors.

Operating in Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat, Akme Fintrade India Ltd is headquartered in Udaipur, Rajasthan, with its Corporate Office located in Mumbai, Maharashtra. It boasts a network of 12 branches and over 25 points of presence, encompassing both digital and physical branches, and has successfully catered to upwards of 200,000 customers. The company facilitates financing for new two-wheelers and three-wheelers such as scooters, motorcycles, and auto rickshaws, targeting both salaried professionals and self-employed individuals outside the traditional professions.

Subscription details

As of June 21, 2024, the IPO was subscribed 54.49 times. The public issue saw a subscription rate of 44.58 times in the retail category, 28.12 times in the QIB category, and 129.98 times in the NII category.

The IPO price band was Rs 114 and Rs 120, with a face value of Rs 10 per share and a lot size of 125 shares. The total size of the company’s IPO was Rs 132 crore, and the final share issue price was fixed at Rs 120 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 5% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.