Aasaan Loans IPO: Comprehensive Guide

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Aasaan Loans IPO: Comprehensive Guide

Akme Fintrade India Ltd IPO worth RS 132 Cr to open on 19th June

June 17th, 2024 News

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.

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets (₹ Cr)	417.96	390.50	374.01	455.40
Revenue (₹ Cr)	53.45	69.57	67.50	86.79
PAT (₹ Cr)	12.25	15.80	4.12	16.31
Net Worth (₹ Cr)	217.01	204.78	136.84	130.26
Reserves and Surplus (₹ Cr)	185.34	173.11	115.03	108.45
Total Borrowing (₹ Cr)	195.19	177.76	230.06	317.82

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:

Augmenting the capital base to meet future capital requirements.
Expanding the business and assets.
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.