Aasaan Loans: Akme Fintrade India shares list at 6% premium on NSE

Akme Fintrade (India) Ltd (Aasaan Loans) on Wednesday made a decent market debut, as the scrip got listed at Rs 127 on NSE, a 5.83 per cent premium over its issue price of Rs 120. On BSE, the stock debuted at Rs 125.70, up 4.75 per cent. With this, the NBFC stock commanded a market capitalisation of Rs 536.42 crore. The grey market premium (GMP) for Akme Fintrade had fallen sharply in recent days, even as the issue was subscribed 54.49 times.

At the issue price, the stock was valued at a Price-to-Book value (P/BV) of 2.5 times.

Akme Fintrade is a NBFC registered with the RBI as a non-systemically important non-deposit taking company. It operates across four states namely Rajasthan, Maharashtra, Madhya Pradesh and Gujarat. The company focuses on vehicle financing and business loans to small businesses and SMEs.

With 12 branches and over 25 points of presence, including digital and physical branches, it has served over 200,000 customers. The Company carries out operations in the format of “hub & spoke” business model. The Company’s digital lending platform is currently under development and will roll out in a phased manner.

As of December 2023, the company’s business loan segment, which constituted 76.08 per cent of the total loan book, experienced a degrowth of 21.08 per cent from March 2023 levels. The gross non-performing Assets in this segment increased 4.56 per cent. Arihant Capitak Markets expects the segment’s performance to improve going forward.