Gurugram-based Aye Finance Limited, a non-banking financial company – middle layer (NBFC-ML) focused on providing loans to micro-scale micro, small, and medium enterprises (MSMEs) across India, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 1,450 crore through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on December 16, 2024.
The IPO, with a face value of Rs 2 per equity share, combines a fresh issue of up to Rs 885 crore and an offer of sale of up to Rs 565 crore by Corporate and Individual Selling Shareholders.
The offer for sale consists of the sale of equity shares up to ₹150 crores by LGT Capital Invest Mauritius PCC with Cell E/VP, up to ₹130 crore by CapitalG LP, up to ₹100 crore by A91 Emerging Fund I LLP, up to ₹100 crore by Alpha Wave India I LP, up to ₹56.04 crore by MAJ Invest Financial Inclusion Fund II K/S, up to ₹6.8 crore by CapitalG International LLC, up to ₹14.5 crore by Harleen Kaur Jetley, and up to ₹7.66 crore by Vikram Jetley.
The proceeds from its fresh issuance will be utilized to augment its capital base to meet the Company`s future capital requirements arising out of the growth of its business and assets and general corporate purposes.
The company, in consultation with the book-running lead managers, may consider a further issue of specified securities aggregating up to Rs 177 crore. If such placement is completed, the fresh issue size will be reduced.
Aye Finance is a non-banking financial company – middle layer (NBFC-ML) focused on providing loans to micro scale micro, small and medium enterprises (MSMEs) across India. It provides a range of business loans for working capital and business expansion needs, against hypothecation of working assets or against security of property to customers across manufacturing, trading, service and allied agriculture sectors. It is among the leading nonbanking financial companies (NBFCs) providing business loans to the largely underserved micro scale enterprises in India, with 508,224 active unique customers across 18 states and three union territories and with assets under management (AUM) of ₹ 4,979.76 crore, as of September 30, 2024, according to a CRISIL Report.
The NBFC provides small-ticket business loans with an average ticket size (ATS) on disbursement of ₹ 1,50,000 to micro enterprises. It is the most geographically diversified lender amongst the Peer MSME Focused NBFCs, according to a CRISIL Report. It is the fastest growing NBFC in India among the Peer MSME Focused NBFCs in terms of year-on-year AUM growth between Fiscal 2024 and Fiscal 2023, growing at 64.00%, according to a CRISIL Report.
Its product portfolio offers a complete range of products, covering both secured and unsecured loans, which includes, mortgage Loans, ˜Saral` Property Loans, Secured Hypothecation Loans, and Unsecured Hypothecation Loans.
Axis Capital Limited, IIFL Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the issue.