Akme Fintrade Stock Gains 3% After Announcing MSME Co-Lending Collaboration

New Delhi, Sep 27 (KNN) Shares of Akme Fintrade (India) Limited saw a rise of 3.04 per cent on Friday, September 27, 2024, reaching an intraday high of Rs 115 per share.

The stock rallied following the company’s announcement of a strategic partnership with MAS Financial Services for co-lending in the Micro, Small, and Medium Enterprises (MSME) sector.

In a statement, Akme Fintrade outlined the objective of the collaboration as improving credit access to underserved MSMEs through a streamlined digital lending platform.

The company’s CEO, Akash Jain, emphasised the importance of the partnership, stating, "This initiative will allow Akme Fintrade to extend its reach in rural and semi-urban areas, offering vital financial support to small business owners seeking to expand their operations. The co-lending model is pivotal in helping us address the financial needs of these underserved communities."

Under the co-lending agreement, Akme Fintrade will be responsible for 20 per cent of the loan exposure, while MAS Financial Services will take on 80 per cent.

This risk-sharing model aligns with the Reserve Bank of India’s (RBI) co-lending framework, which aims to enhance credit flow to underserved sectors while addressing liquidity issues faced by non-banking financial companies (NBFCs).

The fully digital nature of the loan platform—covering everything from customer onboarding to disbursement—ensures quick and efficient processing without manual intervention.

Jain also noted, "The co-lending model allows us to offer loans at a more affordable cost, making a tangible impact on the financial ecosystem for small businesses in need of accessible funds."

Akme Fintrade, a NBFC established in 1996, made its public debut on the stock exchanges on June 26, 2024. The shares were listed at Rs 127 on the NSE and Rs 125.70 on the BSE, a modest increase from its issue price of Rs 120.

Despite the initial gains, the stock has since seen a decline of over 15 per cent, with a 52-week range of Rs 93.05 to Rs 134.70.

Specializing in vehicle and business loans, Akme Fintrade has carved a niche by catering to rural and semi-urban communities. The company’s product portfolio includes vehicle finance, particularly for used commercial vehicles and two-wheelers, and business loans for small enterprises.

At 11:31 AM, Akme Fintrade shares were trading 1.84 per cent higher at Rs 113.65, while the BSE Sensex was down by 0.10 per cent, trading at 85,752.45 points.

(KNN Bureau)