Akiko Global Services IPO: SME Public Issue Subscribed 1.42x; GMP Hints Premium Listing; Key Details Here

Akiko Global Services Limited, a name in the distribution of financial products such as credit cards, loans, and CASA, has launched its Initial Public Offering (IPO) on June 25, 2024. With a goal to raise Rs 23.11 crores at the upper band through this IPO, the shares are set to be listed on the NSE Emerge platform.

IPO Details and Equity Share Allocation

Akiko Global Services is offering up to 30,01,600 equity shares at a face value of Rs 10 each. The allocation of equity shares is divided as follows:

QIB Anchor Portion: Up to 8,54,000 equity shares
Qualified Institutional Buyers (QIB): Up to 5,69,600 equity shares
Non-Institutional Investors (NII): Up to 4,28,800 equity shares
Retail Individual Investors (RII): Up to 9,98,400 equity shares
Market Maker: Up to 1,50,400 equity shares

The IPO has attracted several notable anchor investors, including Saint Capital Fund with 240,000 equity shares allocated, Varsu India Growth Story Scheme 1 with 131,200 equity shares allocated, SB Opportunity Fund-1 with 131,200 equity shares allocated, Ashika Global Securities Private Limited with 352,000 equity shares allocated

The net proceeds from the IPO will be strategically utilized for the implementation of ERP solutions and TeleCRM, development of mobile applications for financial product solutions, meeting working capital requirements, enhancing visibility and awareness of the brands, and general corporate purposes.

On the first day of the bidding process, Akiko Global Services IPO was subscribed 1.42 times. Specifically, the retail category saw a subscription rate of 2.53 times, while the Non-Institutional Investors (NII) category was subscribed 1.01 times, according to data from Chittorgarh.

The grey market premium (GMP) for Akiko Global Services shares is Rs 18 per share. This indicates that the shares were trading at Rs 95 apiece in the grey market, a premium of 23.38% to the IPO price of Rs 77 per share.

Key Dates and IPO Details

Subscription Opening Date: June 25, 2024
Subscription Closing Date: June 27, 2024
IPO Allotment Date: July 1, 2024
IPO Listing Date: July 2, 2024

The price band for the IPO is set at Rs 73 to Rs 77 per share. At the upper end of the price band, the company aims to raise Rs 23.11 crore through the fresh issue of 30.02 lakh equity shares. The lot size for the IPO is 1,600 shares, with a minimum investment amount required by retail investors being Rs 1,23,200.

Priyanka Dutta, Managing Director of Akiko Global Services Limited, expressed her enthusiasm for the IPO, stating, "As we embark on this journey with our upcoming IPO, I am truly excited about the growth prospects for Akiko Global Services Limited. As a Channel Partner for leading banks and NBFCs in India, we specialize in distributing financial products like credit cards, loans, and CASA. Our success is driven by advanced digital marketing, including effective Google SEO campaigns, and a commitment to diverse marketing channels such as telemarketing and digital campaigns. Our platform, Money Fair, uses advanced algorithms for unbiased credit evaluation, enhancing customer options with multiple lenders. This strategic infusion of capital will strengthen our capabilities and propel us towards achieving even greater milestones in the market. This IPO marks a significant milestone in our journey, opening new opportunities as we enter the public market."

Vikas Kumar Verma, Director of Fast Track Finsec Private Limited, highlighted the growth potential of the Indian credit card market, stating, "The Indian credit card market has demonstrated robust growth, fueled by increasing adoption of e-commerce, contactless payments, and innovative product offerings. This growth trend has been accompanied by a notable rise in credit card issuance."

In the fiscal year 2023, Akiko Global Services reported a revenue of Rs 39.58 crore, an EBITDA of Rs 6.32 crore, and a net profit of Rs 4.53 crore. For the 10 months leading up to January 2024, the company's revenue was Rs 26.09 crore, EBITDA was Rs 4.60 crore, and net profit stood at Rs 3.21 crore.

With its strategic use of advanced digital marketing, robust financial performance, and a clear vision for growth, the company is well-positioned to capitalize on the opportunities presented by the public market. Investors and market watchers will be observing the progress of this IPO.