Akme Fintrade (India) Ltd - Stock Valuation and Financial Performance

The company was originally incorporated as ‘Akme Fintrade (India) Private Limited’ as a private limited company under the provisions of the Companies Act, 1956, pursuant to a certificate of incorporation dated February 5, 1996 issued by the Registrar of Companies, Rajasthan, Jaipur. Thereafter, the Company was converted to a public limited company, pursuant to a special resolution passed by its shareholders on January 5, 1997 and the name of the Company was changed to ‘Akme Fintrade (India) Limited’ and a fresh certificate of incorporation dated March 11, 1997 was issued to the Company by the Registrar of Companies, Rajasthan, Jaipur.

The company is a non-banking finance company (NBFC) incorporated in the year 1996 registered with the Reserve Bank of India as a Non-systemically important non-deposit taking company with over two decades of lending experience in rural and semi-urban geographies in India. It is primarily engaged in rural and semi-urban centric lending solutions to look after the needs and aspirations of rural and semi-urban populace. Its portfolio includes Vehicle Finance and Business Finance Products to small business owners. It has a long history of serving rural and semi-urban markets with high growth potential and has maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and low cost expansion into underpenetrated areas. Therefore, it strategically focusses on clients in the rural and semiurban sector.

The company’s digital lending platform www.aasaanloans.com is currently under development and will be rolled out in a phased manner. This digital lending platform, www.aasaanloans.com, has been currently deployed to a select group of users for the purpose of User Acceptance Testing (UAT), specifically focusing on Two-wheeler finance as the initial phase. Concurrently, its IT team is actively engaged in developing the product for loan against property, commercial vehicle financing, and secured business loans, which will be introduced in a phased manner. It is rigorously scrutinizing all aspects of Two-wheeler finance and subjecting them to stress testing using various parameters to ensure alignment with the anticipated credit standards before expanding the rollout to a broader audience at its branches. As a preliminary measure, it has taken the initiative of launching the website aasaanloans.com. This distinct approach facilitates the identification of businesses with low risk and high potential, thereby offering opportunities to individuals who previously lacked access to both short-term and long-term financing options. The company has its footprints in rural and semi-urban geographies in 4 Indian states Rajasthan, Maharashtra, Madhya Pradesh and Gujarat.

Business area of the company

The company operates two principal lines of business, namely Vehicle financing, comprising of Used Commercial Vehicle, 2 Wheeler Loans, Used 2 Wheeler Loans; and Business Finance to small business owners and SME/MSME business owners. The company’s Vehicle Finance business primarily involves providing financing for purchases of two-wheelers and three-wheelers passenger vehicles used or new commercial vehicles. Its vehicle finance operations involve a relatively larger sourcing team as compared to its other business lines as it is largely based on its experience of working with customers with limited credit history and its ability to effectively assess risks associated with financing used vehicles. It finances the purchase of new two-wheelers and Three Wheelers, such as Scooters, motorcycles and auto rickshaws to salaried professionals and self-employed non-professionals. It also finances the purchase of used commercial vehicles, including light commercial vehicles (LCVs), which carry goods and passengers, and heavy commercial vehicles (HCVs), which carry goods. Besides, the company’s lending business to small business owners including SME and MSME lending business, primarily involves extending secured loans for business purposes to small and medium size enterprises, including businessmen, traders, manufacturers and self-employed professionals.

Major events and milestones

• 1996: Incorporation of the Company.
• 1997: Conversion of the Company from a private limited company into public limited Company.
• 1999: Registration with RBI as Deposit taking NBFC.
• 2012: Care BB rating assigned by CARE to bank facilities.
• 2014: New loan products introduced namely three wheeler & four wheeler loans.
• 2015: Achieved AUM of Rs 8689.50 lakh and loan disbursement of Rs 7115.86 lakh during FY 2015-16.
• 2016: Expanded business of operation in Maharashtra.
• 2017: Geographical reach to Madhya Pradesh.
• 2017: Achieved AUM of Rs 33891.02 lakh and loan disbursement of Rs 26354.44 lakh during FY 2017-18.
• 2017: Launch of new products namely business (secured).
• 2018: Geographical reach to Gujarat.
• 2019: The Company was granted NBFC-ND-SI registration on achievement of asset size Rs 50,000,00 lakh.
• 2019: Achieved AUM of Rs 47405.06 lakh and loan disbursement of Rs 29172.90 lakh.
• 2020: Issue of Rated, Listed, Unsubordinated, Secured, Transferable, Redeemable, Non-Convertible Debentures of Rs 1000.00 lakh on a private placement basis to Union Bank of India.
• 2021: Achieved loan portfolio of Rs 42100.78 lakh, total income of Rs 8,679.38 lakh and loan disbursements of Rs 5377.60 lakh as on March 31, 2021.
• 2022: Digital journey initiated through launch of www.aasaanloans.com.