Aye Finance Sets Stage for Public Listing with INR 1,450 Cr IPO

Non-banking financial company (NBFC) Aye Finance has initiated plans for its public listing. During an extraordinary general meeting (EGM) on December 11, the company’s board approved raising up to INR 1,450 Cr through an initial public offering (IPO). 

According to filings accessed by Moneycontrol, the IPO will consist of a fresh issue of shares worth up to INR 885 Cr, alongside an offer for sale (OFS) component of INR 565 Cr. Axis Capital, JM Financial, Nuvama, and IIFL Securities have been appointed as merchant bankers for the issue.

The move towards an IPO is part of Aye Finance's strategy to strengthen its financial position and expand its presence in the lending market. As part of its preparation the company is also restructuring its leadership with the board approving the appointment of Sanjay Sharma as managing director and Aditya Misra from ABC Impact as a non-executive non-independent director.

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Additionally, five non-executive and non-independent directors, mostly representing investors, have resigned from the board for “personal reasons,” including representatives from Elevation Capital, Alpha Wave India, LGT Capital Invest, A91 Emerging Fund, and British International Investment.

This push for an IPO follows earlier reports suggesting Aye Finance was aiming to raise between INR 2,000 Cr to INR 3,000 Cr. The company, which was founded in 2014 by Sanjay Sharma and Vikram Jetley, provides loans to small businesses across India using AI-driven credit assessments, bypassing the need for traditional documentation.

The announcement comes after Aye Finance's recent fundraising efforts, including a INR 250 Cr investment from ABC Impact in September, a INR 250 Cr loan securitisation deal with Goldman Sachs in August, and several other funding rounds. 

The company reported a threefold increase in net profit for FY24, reaching INR 161 Cr, with a 67% increase in revenue to INR 1,072 Cr. Additionally, its assets under management (AUM) grew significantly to INR 4,500 Cr by the end of FY24.

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