5 reasons to invest in Akme Fintrade India Ltd IPO
India’s two-wheeler loan market is expected to touch a valuation of US$12 Billion by 2025. The fast growing population in rural India and their growth aspirations supports this valuation. Therefore, investing in the upcoming Initial Public Offering (IPO) of Akme Fintrade India Ltd., a prominent player in the MSME and two-wheeler lending segment in rural India will be a worthy investment for 2024.
Investing in the upcoming IPO of Akme Fintrade is now easier than ever with HDFC Sky One-Click IPO. This innovative feature allows you to participate with one click using your existing UPI account.
5 reasons to invest in Akme Fintrade India Ltd IPO
Rural demand is skyrocketing especially in terms of vehicle sales. Akme Fintrade’s Aasaan Loans offers two-wheeler finance to rural Indian folks in four different states at competitive rates. And the same is expected to remain for the years to come. Therefore, with high rural demand for two wheelers this stock will continue to perform well.
2. Strong presence in 4 states
Akme has strong presence in four states namely Rajasthan, Gujarat, Madhya Pradesh and Maharashtra. All these states have MSMEs who require financing and a relatively young population who wish to buy two wheelers. And they support people who are not eligible for bank loans.
3. Rural market expertise
Unlike other large players with scattered presence in rural and urban market segments, Akme has a strong rural clientele and more than two decades they have maintained the same. They offer farm loan equipment loans, which supports farmers to buy farming equipment to increase their work efficiency.
4. Stronger monsoon = better yield
IMD has predicted better monsoon this year. Due to the same, farmers would prefer having machinery that helps them increase their yield. Hence, they might end up investing in equipment for better yields.
5. Growing population & aspirations of a younger India
India is a country with a major chunk of young population. Therefore, the demand for two wheelers too will rise in the coming years. The same will in turn lead to the requirement for quick financing options and here Akme might play a vital role as a facilitator.
About Akme Fintrade India Ltd
Akme Fintrade India Ltd. Comes with more than 25 years of experience in the rural financing market. Farm equipment loans, two wheeler financing, loan against property and mahila udyog loan are some of the services they offer. They operate with strong in Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.
领英推荐
Key Details of Akme Fintrade India Ltd IPO
* IPO Date: June 19-21, 2024
* Face Value: Rs. 10 per share
* Price Band: Rs. 114 - Rs. 120 per share
* Lot Size: 125 shares
* Offer for Sale: 1,10,00,000 shares
Financials:
* After a major fall in 2022, Akme’s revenue for the last financial year stood at Rs. 69 Crore.
* Net Profit more than tripled from 2022 period i.e., from Rs. 4 Crore to Rs 15 Crore.
* Interest rate has also reduced considerably since 2021.
Objectives of the IPO:
* To fund working capital requirements
* General corporate purposes
* Overall, a strategic financial move to improve liquidity and company’s financial position
* Business expansion
Conclusion:
Akme presents a compelling opportunity for investors looking to gain exposure to the financial trade segment in India. The company's strong understanding of the rural market and the continued demand in rural areas, there is a possibility of better performance in the coming days. With an attractive IPO valuation and the ease of investment through HDFC Sky One-Click IPO, Akme is a promising IPO to consider.