Akme Fintrade (India) Limited saw its share price increase by 3.04% on September 27, 2024, reaching an intraday high of ₹115 per share. This positive movement followed the announcement of a significant partnership with MAS Financial Services for co-lending in the MSME (Micro, Small, and Medium Enterprises) sector. This collaboration is designed to improve credit access for underserved communities, particularly in rural and semi-urban areas.
Co-lending partnership: Expanding reach in the MSME sector
Akme Fintrade’s partnership with MAS Financial marks a crucial step in supporting small businesses. Through this collaboration, the company aims to enhance access to credit in the MSME sector by leveraging a fully digital lending platform. This platform streamlines the loan process from customer onboarding to disbursement and monitoring, ensuring fast and efficient loan approvals.
According to Akash Jain, CEO of Akme Fintrade, "This partnership will enable Akme Fintrade to extend its reach in rural and semi-urban areas, providing crucial financial support to small business owners looking to expand their operations." The partnership will play a pivotal role in addressing liquidity needs and ensuring smoother loan processing for MSMEs.
Under the co-lending model, Akme Fintrade will bear 20% of the loan exposure, while MAS Financial will cover the remaining 80%. This structure aligns with the Reserve Bank of India’s initiative to boost credit flow to underserved sectors, making financing more affordable and accessible to small business owners. As part of this arrangement, Akme Fintrade’s role in share market investment grows stronger by aligning with MAS Financial’s broader lending capabilities, which could contribute to its future share performance.
Akme Fintrade IPO and share performance
Akme Fintrade made its stock market debut on June 26, 2024, with a modest listing on both the NSE and BSE. On the NSE, the stock opened at ₹127, reflecting a 5.83% increase from its issue price of ₹120, while on the BSE, the share price started at ₹125.70, a 4.75% rise. Despite the positive opening, the stock has faced a decline of over 15% since its listing, and its 52-week range stands between ₹93.05 and ₹134.70.
Akme Fintrade’s share price performance reflects fluctuating market conditions. However, the new partnership with MAS Financial is expected to positively influence its growth trajectory. This move may not only strengthen the company’s presence in rural and semi-urban areas but also bolster investor confidence, particularly for those engaged in share market investment.
Akme Fintrade: A leading NBFC focused on rural and semi-urban markets
Founded in 1996, Akme Fintrade is a non-banking finance company (NBFC) specialising in vehicle and business loans. The company targets rural and semi-urban communities, offering products such as vehicle finance for both new and used commercial vehicles, and business loans tailored to small business owners. With its focus on underserved sectors and collaboration with MAS Financial, Akme Fintrade continues to contribute meaningfully to India's financial inclusion efforts.
At 11:31 AM on September 27, 2024, Akme Fintrade shares were trading 1.84% higher at ₹113.65, while the BSE Sensex was down by 0.10%, trading at 85,752.45.
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