Akme Fintrade IPO: 10 key risks investors should know before subscribing to the ₹132- crore issue

livemint.com:

₹132 crore offering, which launched today, has two more days to navigate its way towards huge subscription numbers. The NBFC is registered with the RBI as a non-systemically important non-deposit taking organisation and has over 20 years of lending experience in India's rural and semi-urban areas.

The company's principal focus is on providing finance solutions to rural and semi-urban people in order to suit their requirements and objectives. Small business owners can take use of the company's vehicle finance and business finance products.Also Read: Akme Fintrade IPO opens today: Check latest GMP, subscription status, key dates, more.

Apply or not?The company's stated counterparts are MAS Financial Services (P/E of 26.47), Shriram Finance (P/E of 14.73), Cholamandalam Investment and Finance Company (P/E of 33.52), Arman Financial Service (P/E of 20.99), and CSL Finance (P/E of 22.70).The firm aims to use the net proceeds of the offering to expand the company's capital base in order to meet future capital requirements that are projected to arise as a result of business and asset growth. Furthermore, a portion of the proceeds from the issuance will be used to fund issue-related expenses.However, market analysts point out that Akme Fintrade India Ltd has a history of financial irregularity, operates in a highly competitive and crowded business category, is subject to stringent regulatory requirements, and looks to be aggressively priced.Also Read: Akme Fintrade IPO: Retail portion fully subscribed within the first 2 hours of Day 1.