Aye Finance IPO price band has been fixed in the range of ₹122 ₹129 per equity share of the face value of ₹2. The Aye Finance IPO date of subscription is scheduled for Monday, February 9 and will close on Wednesday, February 11. The allocation to anchor investors for the Aye Finance IPO is scheduled to take place on Friday, February 6.
The floor price is 61 times the face value of the equity shares and the cap price is 64.5 times the face value of the equity shares. The Aye Finance IPO lot size is 116 equity shares and in multiples of 116 equity shares thereafter.
Aye Finance IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.
Tentatively, Aye Finance IPO basis of allotment of shares will be finalized on Thursday, February 12 and the company will initiate refunds on Friday, February 13, while the shares will be credited to the demat account of allottees on the same day following refund. Aye Finance share price is likely to be listed on BSE and NSE on Monday, February 16.
Aye Finance IPO details
The ₹1,010 crore offering includes a new equity issuance of ₹710 crore and a share sale worth ₹300 crore by current shareholders such as Alpha Wave India, MAJ Invest Financial Inclusion Fund, CapitalG (part of Alphabet), LGT Capital, and Vikram Jetley. At the highest end of the price range, the company’s valuation is around ₹Rs 3,184 crore.
Among the key investors, Elevation Capital owns a 16.03% share, followed closely by LGT Capital with 13.99%, Alphabet via CapitalG with 13.14%, and Alpha Wave India holding 11.1%. British International Investment and A91 Emerging Fund both have stakes exceeding 9%.
The company mentioned that the funds raised from the new issue will be allocated to support future capital needs stemming from business and asset expansion.
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management are the lead managers, and Kfin Technologies Ltd. is the registrar of the issue.
Company details
Established in 1993, Aye Finance Limited is a non-banking financial company (NBFC) that provides both secured and unsecured small business loans for working capital purposes, including mortgage loans and ‘Saral’ Property Loans, as well as secured and unsecured hypothecation loans, mainly targeting micro-scale MSMEs.
The firm offers business loans aimed at facilitating business growth, secured by working assets or property, to clients in sectors such as manufacturing, trading, services, and related agriculture.
Currently, the company caters to 586,825 active clients across 18 states and three union territories, managing substantial assets.
Product Offerings included Mortgage Loans, ‘Saral’ Property Loans, Secured Hypothecation Loans, and Unsecured Hypothecation Loans.
As per the company’s red herring prospectus (RHP), the company’s listed peers include SBFC Finance Ltd (with a P/E of 27.32), and Five-Star Business Finance Ltd (with a P/E of 12.07).
