Akme Fintrade IPO

Increase focus on Digitisation and expanding product portfolio.

Deepen, strengthen, and expand geographical Presence.

Continue to focus on small business owners and self-employed individuals.

Enhance its Brand Recall to Attract New Customers.

Leverage its Network, Domain Expertise and Data to Enhance Product Offering.

Leverage Technology to Grow its Business.

Proven execution capabilities with a strong rural focus.

Well established Vehicle Finance, small businesses lending business.

Stable and experienced management team.

Customer centric approach and deep understanding of target customers.

Access to Diversified Sources of Capital and Effective Asset Liability Management.

Robust underwriting process and risk management policies.

Hub and Spoke business model that improves efficiencies and decreases costs.

The company has experienced a decline in revenue in Fiscal Year 2022 and may consider to experience such decline in the future.

The Company has higher levels of NPAs as compared to some of its peer companies and hence the company`s business may be adversely affected if the company is unable to provide for such higher levels of NPAs.

The Company did not comply with certain RBI norms/guidelines in the past. Non-compliance with the RBI`s norms/guidelines and violations of regulations prescribed by the RBI, could expose it to certain penalties and restrictions.

The Company has changed its shareholding by more than 26% during FY 2021-22 and FY2022-23 and has changed its management during the FY 2021-22 without taking the prior approval from RBI. The company cannot assure you that such or other instances of violations may not occur in future and the Company, Promoters and Directors may not be subjected to the disciplinary penal action or fine and penalties by the Reserve Bank of India, and if such actions are initiated or penalty and fine imposed, the same may adversely affect the results of its operations, revenues and profitability and adversely impact the company reputation in the market.

The company has in the past, made certain issuances and allotments of its equity shares which may not be in compliance with the applicable provisions and rules of the Companies Act, 1956. the company cannot guarantee that its will not be subject to any other complaints and penalties in the future regarding the said violations.

Its business and operational presence is concentrated in the State of Rajasthan and the company result of operations may be adversely affected by difficulties in expanding its business or pursuing new business opportunities in new regions and markets.

A survey was carried out on November 23, 2022 by the Income-tax authorities at premises of the Company at 4-5 Subcity Centre, Savina, Krishi Mandi, Udaipur, and Search was carried out at its Promoters namely Nirmal Kumar Jain and Dipesh Jain and its Promoter Group member namely Jenisha Jain under Section 132 of the I.T. Act at 18, Tagore Nagar, Sector-4, Udaipur.

Some of its secretarial records are not traceable.

Its credit ratings are presently low and any future downward revision in the company credit ratings could adversely affect its ability to service the company debts as well as raise funds in the future hence affecting its results of operations and financial conditions.

The Company is party to a legal proceeding being Civil Suit No. 516 of 2021 filed by Messrs Timeglass Construction and Sandeep Barjatya, (purportedly Partner of M/s Timeglass Construction) inter-alia alleging that a mortgage against a loan has been illegally obtained by the Company. Any adverse outcome of such proceeding may adversely affect its reputation, business, operations, financial condition and results of operations.

The company significantly depends on its business Loans and any adverse developments in this sector, or in the other industries in which its business loan customers operate, could adversely affect the company`s business, results of operations, financial condition and cash flows.

Certain statutory and regulatory licenses and approvals are required for conducting its business and any failures or omission to obtain, maintain or renew these licenses and approvals in a timely manner, or at all, could adversely affect its business and results of operations.

The Company, its Promoters and Directors are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.

The company may faces asset-liability mismatches, which could affect its liquidity and consequently may adversely affect the company`s operations, cash flows and profitability.

Its may faces difficulties and incur additional expenses in operating in rural & semi-urban markets, where infrastructure is limited, and recovery of the company loans is comparably difficult.

The Company has experienced negative cash flow in the past and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.

Its inability to maintain the company`s capital adequacy ratio could adversely affect its business.

Its liquidity may be affected by the COVID-19 pandemic which may affect the company`s ability to continue to operate and grow its business.

The Company has inadvertently failed to submit certain intimations as required under the SEBI Listing Regulations to the BSE. In the event the Company fails to submit requisite disclosures to regulators in future, then the Company may be penalised by the regulators and the same may affect its results of operations.

The company is subject to certain conditions and restrictions in terms of its financing arrangements.

The company has made Company Law related non- compliances in the past. Its may be subject to regulatory action, including monetary penalty that may be imposed on the company.

The company does not own premises where its branch offices are located. Any termination or failures by it to renew the rent and license agreements in a favorable and timely manner, or at all, could adversely affect its business and results of operations. Moreover, many of the lease and license agreements entered into by it may not be duly registered or adequately stamped.

Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements, could adversely affect the company`s business, results of operations and financial condition.

The company requires substantial capital for its business and any disruption in the company sources of capital could have an adverse effect on its business, results of operations and financial condition.

The risk of non-payment or default by its borrowers may adversely affect the company business, results of operations and financial condition.

The company is affected by volatility in interest rates for both its lending and treasury operations, which could cause its net interest income to vary and consequently affect the company`s profitability.

The Objects of the Issue for which funds are being raised have not been appraised by any bank or financial institution. The deployment of funds is entirely at the discretion of its management and as per the details mentioned in the section titled "Objects of the Issue". Any revision in the estimates may require it to reschedule its expenditure and may have a bearing on its expected revenues and earning.

The company operates in a highly competitive industry and its inability to compete effectively may adversely affect the company`s business.

The company depends on the services of its management team and employees. The company inability to retain existing members of its management team and recruit new members for the company management team may adversely affect its business.

Any failures or significant weakness of its internal controls system could cause operational errors or incidents of fraud, which would adversely affect its profitability and reputation.

The company utilize the services of certain third parties for parts of its operations. Any deficiency or interruption in their services could adversely affect its business and reputation.

A substantial portion of its customers are first time borrowers which increases risks of non- payment or default for the company.

The company may be exposed to potential losses due to a decline in value of assets secured in its favour, and due to delays in the enforcement of such security upon default by its borrowers.

Failures to train and motivate its 125 employees may lead to an increase in the company employee attrition rates which is 15.79% as on December 31, 2023 and its results of operations could be adversely affected as a result of any disputes with its employees.

The company is exposed to risks that may arise if its customers opt for balance transfers to other lenders.

A small portion of its collections from customers is in cash, exposing the company to certain operational risks.

The company has given corporate guarantees to financial institutions, which may or may not crystallize.

The company has included certain non-GAAP financial measures and other selected statistical information related to its operations in this Red Herring Prospectus. Such non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the financial services industry and may not be comparable with financial or statistical information of similar nomenclature computed and presented by other companies.

Negative publicity could damage its reputation and adversely impact the company business and financial results.

This Red Herring Prospectus contains information from third parties and an industry report obtained from Dun and Bradstreet, which the company has commissioned and paid for purposes of confirming its understanding of the industry exclusively in connection with the Issue. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.

The company may enter into related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not have an adverse effect on its results of operation and financial condition.

The Company may not be able to pay dividends in the future. Its ability to pay dividends in the future will depends upon the company`s future earnings, financial condition, cash flows, working capital requirements and capital expenditures and the terms of its financing arrangements.

The average cost of acquisition of Equity Shares by its Promoters may be lower than the Floor Price.

Some of its Directors/Promoters may be interested in companies or entities which are in the same line of business as the company.

Any failures to protect or enforce its rights to own or use trademarks and brand names and identities could have an adverse effect on its business and competitive position.

The Price Band, Issue Price, market capitalization to total turnover and price to earnings ratio based on the Issue Price of the Company, may not be indicative of the market price of the Company on listing or thereafter.