Game On: Aye Finance Gears Up For Rs 1,450 Cr IPO After SEBI Go-Ahead

In order to raise Rs 1,450 crore through an initial public offering (IPO), Aye Finance Limited, a non-banking financial company - middle layer (NBFC-ML) that specializes in lending to micro-scale micro, small, and medium enterprises (MSMEs) throughout India, has received final observation from the Securities and Exchange Board of India (SEBI), which oversees capital markets. The IPO documents were submitted to SEBI by the company on December 16, 2024.

A new issue of up to Rs 885 crore and an offer of sale of up to Rs 565 crore by corporate and individual selling shareholders are combined in the initial public offering (IPO), which has a face value of Rs 2 per equity share. Among the equity shares up for sale are those from LGT Capital Invest Mauritius PCC with Cell E/VP for up to Rs 150 crore, CapitalG LP for up to Rs 130 crore, A91 Emerging Fund I LLP for up to Rs 100 crore, Alpha Wave India I LP for up to Rs 100 crore, MAJ Invest Financial Inclusion Fund II K/S for up to Rs 56.04 crore, CapitalG International LLC for up to Rs 6.8 crore, Harleen Kaur Jetley for up to Rs 14.5 crore, and Vikram Jetley for up to Rs 7.66 crore.

In order to satisfy the company's future capital needs resulting from the expansion of its assets and operations, as well as for general corporate reasons, the proceeds from its fresh issue will be used to increase its capital base.

After consulting with the key managers of the book-running, the business may decide to issue further specified securities worth up to Rs 177 crore. The issue's registrar is KFin Technologies Limited, while the book-running lead managers are Axis Capital Limited, IIFL Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited.

Aye Finance is a middle-layer non-banking financial corporation (NBFC-ML) that specializes in lending funds to micro, small, and medium-sized businesses (MSMEs) all throughout India. It offers a variety of business loans to customers in the manufacturing, commerce, service, and related agricultural industries for working capital and business expansion requirements, secured by working assets or by property security. According to a CRISIL Report, as of September 30, 2024, it had 508,224 active unique customers spread across 18 states and three union territories, and its assets under management (AUM) totaled Rs 4,979.76 crore, making it one of the top nonbanking financial companies (NBFCs) in India that offer business loans to the country's largely underserved micro-scale businesses.

The NBFC offers microbusinesses small-ticket business loans with an average ticket size (ATS) of Rs 1,50,000 upon distribution. According to a CRISIL Report, it is the lender with the broadest geographic diversity among the Peer MSME-focused NBFCs. According to a CRISIL Report, it grew at the quickest rate among Peer MSME-focused NBFCs in India, with an annual growth rate of 64.00% in AUM between Fiscal year 2024 and Fiscal year 2023. Mortgage loans, "Saral" property loans, secured hypothecation loans, and unsecured hypothecation loans are all included in its extensive product offering, which covers both secured and unsecured loans.