Akme Fintrade re-files IPO papers with Sebi

Non-banking financial company Akme Fintrade (India) Ltd on Monday re-filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). This came after the Securities and Exchange Board of India (Sebi) returned the company's Draft Red Herring Prospectus (DRHP) on April 27 without providing reasons for the same.

While returning the IPO prospectus, Sebi, generally, asks a company to file the papers again with certain updates.

Going by the fresh draft papers, the size of the IPO remains unchanged. The initial share sale comprises fresh issuance of 1.1 crore equity shares with no offer for sale (OFS) component.

Proceeds of the issue are proposed to be used to augment the capital base of the company.

The company had first filed its draft paper with the markets regulator on February 16.

Udaipur-based Akme Fintrade is primarily engaged in providing rural and semi-urban-centric lending solutions to customers in four states -- Rajasthan, Maharashtra, Madhya Pradesh and Gujarat.

The company's portfolio includes vehicle finance and business finance products for small business owners.

Gretex Corporate Services Ltd is the sole book-running lead manager for the issue. The equity shares of the company will be listed on the BSE and NSE.

Recently, Sebi has turned cautious while giving clearance to the initial share sale as it returned the preliminary papers of at least half a dozen companies, including Oravel Travels, which operates hospitality technology firm OYO so far this year.