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Investing in India’s growth: Akme Fintrade India Ltd’s public debut

Akme Fintrade Ltd is coming up with an IPO. Find out in detail about the company and its IPO to make financially informed decisions.

India’s financial sector is very diverse, and it is growing very quickly. Both already existing financial services firms and new ones are entering the market at an astonishing pace. Over recent years, there has been a significant expansion. 

A significant player in the financial services domain, Akme Fintrade is attracting a great deal of attention with its forthcoming initial public offering (IPO). Akme Fintrade was founded to make financial solutions easy for everyone to obtain. Over the years, it has built a strong portfolio.

This article aims to provide readers with a comprehensive understanding of the initial public offering (IPO) of Akme Fintrade India Ltd, including its past performance, current financial position and future market implications.

About Akme Fintrade India Ltd

Established in 1996 as a non-banking financial company (NBFC), Akme Fintrade has earned itself a good reputation in the business field of India and is popularly known for that. It is registered under the Reserve Bank of India. The main goal of this company is to provide financial services to rural and semi-urban populations who are unable or do not have access to formal credit systems through banks, etc. 

These groups are often not given enough attention by other financial service providers. Operating for over twenty years, the enterprise has demonstrated operational efficiency and strong financial performance.

The company is present in four states of India, namely, Rajasthan, Maharashtra, Madhya Pradesh and Gujarat. Its registered office is located at Udaipur in Rajasthan, and the corporate office is situated at Mumbai in Maharashtra. The company operates 12 physical branches and over 25 other points of presence, including digital ones.

Must read: Decoding NBFCs: Catalysts for financial inclusion and economic growth 

As of the financial year 2024, Akme Fintrade had served more than 200,000 people. Akme Fintrade’s loan portfolio shows that it wants to help people and small businesses. These are the main segments:

  • Vehicle financing: The business helps people get loans for cars, including used work vehicles and two-wheelers. Akme Fintrade helps people in rural and semi-urban areas move up in the job market and improve their quality of life by making transport easier to reach.
  • Business finance: Akme Fintrade’s business finance products are good for small company owners and SME/MSME companies. To inspire the growth of startups and boost the economy, the firm gives loans to local businesses for current assets, machinery or expansion.

Because Akme Fintrade focuses on high-growth markets and puts the customer first, it is a significant player in closing financial gaps and promoting development that benefits everyone.

Akme Fintrade Ltd IPO details

Akme Fintrade India aims to collect ₹132 crore by an initial public offering (IPO). IPO is the selling of 1,100,000 lakh new shares, with no offer-for-sale (OFS) component. The company will raise the capital to meet future capital requirements and manage expenses relating to the issue from the net proceeds of this offer.

The price band for the IPO is ₹114-₹120 per equity share; bidders can bid for a minimum of 125 equity shares and, therefore, in multiples of 125 equity shares.

Important dates

Subscription openJune 19
Subscription closesJune 21
Listing dateJune 26

Source: RHP – Akme Fintrade (India) Ltd

You may also like: Navigating the listing and delisting of securities on the stock exchange 

Akme Fintrade (India) Ltd. is planning to spend net proceeds from the IPO very carefully. The following are the goals that the company wants to reach:

  • Capital augmentation: The main goal is to improve the company’s capital base. Akme Fintrade will be better capable of meeting its future cash needs this way, especially as it grows its assets and business operations.
  • Business expansion: It is necessary to bring in more money due to the anticipated growth. Having generated funds through the IPO, this company can expand its operations to different markets thus serving a wider customer base.
  • Issue-related expenses: Some of the money from the IPO will be used to pay for costs that are directly related to making an offer. These include costs for running the business, hiring lawyers, promotion, and other related costs.

Akme Fintrade continues to be dedicated to smart fiscal responsibility and strategically using funds to improve its general performance and make money for everyone involved.

Financial position of Akme Fintrade Ltd

Here are some of the most important financial numbers for Akme Fintrade Ltd: 

For the nine months endedDecember 31, 2023(in ₹lakhs)For the year ended March 31, 2023(in ₹lakhs)
Share capital3,167.503,167.50
Net worth21,701.2520,478.11
Total revenue5,340.496,951.37
Profit for the period1224.661580.27
Earnings per share3.875.85
Net asset value per share (₹) (Post bonus)68.5164.65
Total borrowings19,518.9417,776.31

Source: RHP – Akme Fintrade (India) Ltd

Also read: A simple guide to understanding NAV in mutual funds 

Risks and strengths


  1. Revenue decline: During Fiscal Year 2022, Akme Fintrade’s income went down, and this may continue in the future.
  2. High NPAs: The company’s business might be harmed by its larger numbers of non-performing assets when contrasted with other businesses.
  3. Non-compliance with RBI norms: Akme Fintrade did not comply with RBI rules and regulations which may lead them to penalties and restrictions.
  4. Missing secretarial records: There are practical risks because some secretarial records can’t be found.
  5. Low credit ratings: At the moment, poor credit ratings may make it harder to pay off debt and raise money in the future.
  6. Legal proceedings: A legal case that says a mortgage was obtained illegally could hurt the company’s image and finances.


  1. Execution capabilities: A history of good execution shows that Akme Fintrade can handle markets in rural and semi-urban areas.
  2. Established verticals: Its stability comes from its well-established vehicle finance and small business lending areas.
  3. Experienced leadership: Akme Fintrade has a stable and skilled management team that helps the company make good decisions.
  4. Customer-centric approach: The company prioritises the requirements and preferences of its target customers by possessing a profound comprehension of their needs.
  5. Capital access and management: Effective asset-liability management and a variety of sources of cash are managed well by Akme Fintrade.
  6. Robust risk management: It is more stable because the company has strict screening standards and rules for managing risk.
  7. Efficient business model: Akme Fintrade’s Hub and Spoke approach improves efficiency and lowers costs.


The Akme Fintrade IPO is a great chance to invest with the potential for big gains, but you should carefully think about the risks and how the market works before making any financial investment decision.

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