Introduction

Aasaan Loans, a promising player in the lending industry, is set to launch its initial public offering (IPO) with a goal of raising ₹132.00 crores. The entire issue comprises a fresh issuance of 1.1 crore shares. The subscription for the IPO opens on June 19, 2024, and closes on June 21, 2024. The shares are expected to list on the BSE and NSE on June 26, 2024.

IPO Schedule

• Opens: June 19, 2024
• Closes: June 21, 2024
• Basis of Allotment: June 24, 2024
• Initiation of Refunds: June 25, 2024
• Credit of Shares to Demat: June 25, 2024
• Listing Date: June 26, 2024
• Price Band: ₹114 to ₹120 per share
• Lot Size: 125 Shares

Issue Breakdown

• Total Issue Size: ₹132.00 Crores
• Fresh Issue: ₹132.00 Crores (1.1 Crore Shares)

Promoter Holding

• Pre Issue: 56.01%
• Post Issue: TBA

Company Overview

Incorporated in 1996, Akme Fintrade India Ltd operates under the brand name Aasaan Loans. It is a non-banking financial company (NBFC) that primarily provides lending solutions tailored to the needs of rural and semi-urban populations. The company's portfolio includes vehicle finance and business finance products for small business owners.

Aasaan Loans operates in Rajasthan, Maharashtra, Madhya Pradesh, and Gujarat, with a registered office in Udaipur, Rajasthan, and a corporate office in Mumbai, Maharashtra. The company has 12 branches and over 25 points of presence, serving more than 200,000 customers. As of December 31, 2023, it employs 125 permanent staff members.

Key Features

• Book Built Issue: Yes
• Registrar: Bigshare Services Pvt Ltd
• Book Running Lead Manager: Gretex Corporate Services Limited

Financial Performance

Aasaan Loans has shown significant growth over recent years, with a notable increase in revenue and profit.

Key Performance Indicators (KPI)

• ROE: 5.64%
• Debt/Equity: 2.49
• RoNW: 5.81%
• PAT Margin (%): 22.93%

Objects of the Issue

The net proceeds from the issue will be utilized for the following purposes:

1. Augmenting the capital base to meet future capital requirements.
2. Expanding the business and assets.
3. Meeting issue-related expenses.

Conclusion

Aasaan Loans' IPO presents an attractive investment opportunity with its robust financial performance and strategic use of proceeds for business expansion. Investors should evaluate the company's performance, market conditions, and their investment objectives before subscribing to the IPO.