Alphabet-Backed Aye Finance Secures Rs 454 Crore from Anchor Investors Ahead of IPO
Alphabet-backed Aye Finance has successfully raised Rs 454 crore from anchor investors in anticipation of its initial public offering (IPO), which opens for public subscription on February 9. This substantial institutional backing underscores the confidence in Aye Finance, a non-banking financial company (NBFC) specializing in loans for micro-scale MSMEs.
Key Details of Aye Finance’s IPO
– Amount Raised: Rs 454 crore from anchor investors.
– Subscription Dates: The IPO will open on February 9 and close on February 11, with a scheduled listing on February 16 on both BSE and NSE.
– Price Band: The company has set the equity share price at Rs 129, the upper limit of the band, which ranges from Rs 122 to Rs 129.
– Equity Structure: The issue consists of:
– A fresh issue of shares amounting to Rs 710 crore
– An offer for sale of Rs 300 crore by existing investors
Institutional Participation
Significant contributions to the anchor book include:
– Goldman Sachs
– Societe Generale
– HDFC Life
– BNP Paribas Financial Markets
– Bay Pond Partners
– Ithan Creek Master Investors (Cayman)
Financial Overview
Founded in 1993, Aye Finance is dedicated to providing business loans—both secured and unsecured—to micro-scale MSMEs operating within sectors like manufacturing, trading, services, and agriculture. As of September 30, 2025, the company boasts:
– Active Customers: 586,825 across 18 states and three union territories
– Assets Under Management: Over Rs 6,027 crore
– Average Loan Size: Approximately Rs 0.18 crore per disbursement
This strategic focus has allowed Aye Finance to maintain stable credit costs while expanding its loan portfolio. Financial results for the company reflect impressive growth:
– Revenue from Operations:
– Rs 843 crore for the six months ending September 30, a rise from Rs 692 crore year-over-year.
– Full fiscal year FY25 revenue reached Rs 1,460 crore.
– Net Profit: Increased to Rs 175 crore from Rs 40 crore in FY23.
Issue Management
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management are leading the book-running for the issue, while KFin Technologies serves as the registrar. This IPO is particularly interesting as it reserves up to 75% of shares for qualified institutional buyers, with the remainder for non-institutional and retail investors.
Conclusion
Aye Finance’s strong anchor response positions it favorably to capitalize on the active primary market and heightened investor interest in scalable and profitable NBFC business models. The backing from prominent entities like Goldman Sachs reinforces confidence in Aye Finance’s growth trajectory as it seeks to elevate its presence in the MSME lending space. Investors looking to participate in this promising venture should be aware of the IPO’s dynamics and be ready to engage starting February 9.