Akme Fintrade India IPO: Check day 2 subscription status, latest GMP, should you subscribe, other key details

Akme Fintrade India IPO: The initial public offering (IPO) of non-banking financial company (NBFC) Akme Fintrade India Ltd has been receiving strong demand from investors as the issue has been oversubscribed on the first day of biffing. Akme Fintrade IPO opened for subscription on June 19 and will close on June 21.

Akme Fintrade IPO price band has been set at ₹114 to ₹120 per share. At the upper-end of the price band, the company plans to raise ₹132 crore from the issue which is entirely a fresh issue of 1.1 crore share.

The NBFC intends to utilise the fresh issue proceeds for augmenting its capital base.

Akme Fintrade India IPO lot size is 125 shares and the minimum investment amount required by retail investors is ₹15,000.

Read here: Akme Fintrade IPO: Check latest GMP, subscription status, key dates, more. Apply or not?

Akme Fintrade IPO allotment is expected to be finalized on June 24, and the IPO listing date is June 26. Akme Fintrade India shares will be listed on both the stock exchanges, BSE and NSE.

Gretex Corporate Services Ltd is the book running lead manager of the Akme Fintrade IPO, while Bigshare Services Pvt Ltd is the IPO registrar.

Let us check Akme Fintrade IPO GMP today, subscription status and analysts’ review:

Akme Fintrade IPO Subscription Status

Akme Fintrade IPO sailed through on the first day itself. The issue has been subscribed 11.63 times on June 20, the second day of the bidding process. It received bids for 9.14 crore shares as against 78.65 lakh shares on the offer.

The IPO is booked 15.16 times in the retail category and 22.22 times in the Non Institutional Investors (NII) category. The portion for Qualified Institutional Buyers (QIBs) has been subscribed 17%.

Read here: Akme Fintrade IPO: From latest GMP to lot size, here are key things to know

Akme Fintrade IPO GMP Today

Akme Fintrade IPO GMP today, or grey market premium today, is ₹48 per share, according to stock market observers. This indicates that the equity shares of Akme Fintrade India are trading at ₹168 apiece in the grey market, a premium of 40% to the IPO price of ₹120 per share.

Should you subscribe to Akme Fintrade India IPO?

Akme Fintrade India is primarily engaged in rural and semi urban-centric lending solutions. Its portfolio includes Vehicle Finance and Business Finance Products to small business owners.

According to brokerage firm Anand Rathi, Akme Fintrade India is well established Vehicle Finance, small businesses lending business with customer centric approach and deep understanding of target customers and access to diversified sources of capital and effective asset liability management along with Hub and Spoke business model that improves efficiencies and decreases costs.

Also Read: Akme Fintrade IPO: NBFC garners ₹38 crore from anchor investors ahead of public issue

“At the upper price band, the company is valuing at P/E of 27.64x, P/BV of 1.52x with a market cap of ₹512.1 crore post issue of equity shares and return on net worth of 7.72%. We believe that the IPO is fairly priced and recommend a “Subscribe- Long Term" rating to the IPO," said Anand Rathi.

Swastika Investmart Ltd recommends a cautious approach to the Akme Fintrade India IPO and has assigned ‘Neutral’ rating.

While the Grey Market Premium (GMP) suggests some investor interest, the inherent risks outweigh the potential benefits for most investors, it noted.

Read all IPO news here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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