Shares of Akme Fintrade (India), ahead of their listing at the bourses on Wednesday, have taken a hit in the grey market premium (GMP), diminishing the prospects of healthy listing for the investors. The GMP for the counter corrected in the last few sessions, since the closure of the issue.
Ahead of its listing, shares of Akme Fintrade India were commanding a premium of Rs 18-20 in the grey market, suggesting a listing pop of 17 per cent over its issue price of Rs 120 apeice. However, the grey market premium stood around Rs 30 apeice at the closure of the issue on Friday.
Post Gathering a healthy subscription to the issue, Akme Fintrade India, a non-deposit taking non-systematically important NBFC, is all set to make its debut slightly over the issue price on Wednesday. The issue is expected to be listed with a premium of around 15 per cent over the issue price, said Parth Shah, Research Analyst at StoxBox
"Although the prospect for the company’s business segments look promising, we would look for more clarity and confirmation on the financial performance trajectory. We, therefore, recommended high-risk-appetite investors to subscribe to the issue for listing gains," he said.
The IPO of Akme Fintrade (India) was open for bidding June 19 and June 21. The Udaipur based company had sold its shares in the price band of Rs 114-120 per share with a lot size of 73 shares. The company raised Rs 132 crore via its primary offering, which entirely included a fresh share sale of Rs 1.1 crore equity shares.
The issue was overall subscribed a stellar 55.12 times. The quota for qualified institutional bidders (QIBs) was booked 28.12 times The quota for non-institutional investors was subscribed 130.33 times. The portions reserved for retail investors and employees saw bidding for 45.78 times and 5.53 times, respectively during the three-day bidding process.
Incorporated in 1996, Akme Fintrade (India) is a non-banking financial company (NBFC) with over 20 years of experience in lending to rural and semi-urban areas in India. It mainly provides lending solutions tailored to the needs and aspirations of rural and semi-urban populations. Its portfolio comprises Vehicle Finance and Business Finance Products for small business owners.
Brokerage firms remain mixed on the issue, with a positive bias. Gretex Corporate Services is the sole book running lead manager of the Akme Fintrade (India) IPO, while Bigshare Services is the registrar for the issue.
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