AKME FINTRADE INDIA (AASAAN LOAN) IPO Review

Aasaan Loans by Akme Fintrade is a digital platform that gathers and analyses business data from multiple sources and draws insights to judge their creditworthiness, past and current performance in the context of the industry in which they operate. This differentiated approach aids in the identification of businesses with low risk and high promise, thereby providing opportunities for those who previously had no access to long or short-term financing.

Akme Fintrade is backed by strong promoters named, Mr. Nirmal Kumar Jain, Mr. Dipesh Jain and Ms. Manju Devi Jain, who has over 12 years of experience in the Finance Industry.

Financially, Akme Fintrade revenue decreased from ₹8,617.72 Lakhs in FY21 to ₹6,744.13 Lakhs in FY22 and then to ₹6,951.37 Lakhs in FY23 and currently at ₹5,340.49 Lakhs for 9FY24. Similarly, EBITDA decreased from ₹6,790.54 Lakhs in FY21 to ₹4,328.43 Lakhs in FY22 and then increased to ₹4,827.98 Lakhs in FY23 and currently at ₹3,618.83 Lakhs in the 9MFY24. PAT plunged from ₹1,630.50 Lakhs in FY21 to ₹412.07 Lakhs in FY22 but risen in FY23 to ₹1,580.27 Lakhs and currently at 9MFY24 of ₹1,224.66 Lakhs. This does not indicate a steady growth in financial performance. 

For the Akme Fintrade IPO, the company is issuing shares at a pre-issue EPS of ₹5.85 and a post-issue EPS of ₹4.26. The pre-issue P/E ratio is 20.51x, while the post-issue P/E ratio is 32.17x against the industry P/E ratio of 21.9x. The company's ROCE for 9MFY24 is 8.69%, and ROE for 9MFY24 is 5.64%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) indicates potential listing gains of 20% to 25%. Given the company's steady financial performance and the valuation of the IPO, we recommend Risky Investors to apply in the IPO for listing gains and long term Investment purposes.