Akme management involved in money laundering?
Sharing extract and artice from Outlook business. The article is not on Akme but on the SME segment of BSE and cites numerous examples of various companies with involvement in money laundering.For Akme - It questions their ability to raise huge capital on poor fundamentals.
“Similarly, Akme Star Housing Finance, which got its licence from the National Housing Bank in 2009, has managed to raise about ₹4.8 crore on listing. The company had a revenue of ₹60.5 lakh in FY13 along with a housing loan portfolio of ₹65 lakh, which shot up to ₹2.6 crore in FY14. And these are not the only companies to raise huge sums of money without a history or assets to back their businesses. Mumbai-based SPS Finquest raised ₹25.8 crore on a net worth of about ₹2.3 crore.
Had any of these companies gone to a private sector bank to raise capital, their requests would have been rejected outright. In comparison, the SME platform is cheaper and easier to crack, which explains why a glut of companies is cashing in on this trend. But it is difficult to believe that any of these companies could have gotten the valuation they have unless there was some nexus between promoters and intermediaries, with the latter being ready to sell an issue for a premium in return for quick money for their clients.”