Udaipur-based non-bank financial company Akme Fintrade (India)’s IPO will open for subscription on June 19 and close on June 21. The issue is completely a fresh equity sale of Rs 1.10 crore shares of face value Rs 10 each.
The IPO is priced in the range of Rs 114-120 per share, where investors can bid for 125 shares in one lot. At the upper end, the company plans to raise Rs 132 crore through the issue.
About 50% in the public offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.
The funds are being raised primarily to augment its capital base. As per RBI norms, the minimum capital adequacy for an NBFC should be 15%. The company’s capital adequacy as of September 30, 2022 stood at 43.24%. Of this, tier-1 was 39.80%.
“As we continue to grow our loan portfolio and asset base, we will require additional capital in order to continue to meet applicable capital adequacy ratios with respect to our business,” the company said.
In the coming years, the company plans to grow its loan advances which would require tier-1 capital to comply with the applicable capital adequacy regulations.
Through the IPO, the company would have adequate capital without any further need of fresh capital in the short to medium term.
Akme Fintrade is a non-banking finance company (NBFC) engaged in rural and semi-urban centric lending solutions to look after the needs and aspirations of rural and semi-urban populace. Its portfolio includes vehicle finance and business finance products for small business owners.
The company has a long history of serving rural and semi-urban markets with high growth potential and have maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and low cost expansion into underpenetrated areas.
Gretex Corporate Services is managing the offer of the company.
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