Latest News | Sebi Returns IPO Papers of Akme Fintrade

New Delhi, May 2 (PTI) Capital markets regulator Sebi has returned the draft IPO papers of non-banking financial company Akme Fintrade (India) Ltd, a move that might delay the company's initial share sale.

The proposed initial public offer (IPO) comprised fresh issuance of 1.1 crore equity shares with no offer for sale (OFS) component.

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

The company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on February 16.

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According to an update on Sebi's website on Tuesday, the market regulator returned the company's DRHP on April 27 without providing reasons for the same.

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 sales as it returned the preliminary papers of at least half a dozen companies, including Oravel Stays, which operates the hospitality chain OYO, so far this year.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)