The NBFC’s IPO will comprise a fresh issue of shares worth up to INR 885 Cr and an OFS component of INR 565 Cr
Aye Finance’s EGM also saw as many as five non-executive and non-independent directors, primarily investor representatives, stepping down from the board
Founded in 2014, Aye Finance offers loans to small businesses by leveraging its AI-powered algorithms to assess risk in the absence of traditional business documents
Non-banking financial company (NBFC) Aye Finance
has set the ball rolling for its public listing. The company’s board, in an extraordinary general meeting (EGM) held on Wednesday (December 11), reportedly gave its nod for raising up to INR 1,450 Cr through an initial public offering (IPO).
As per filings accessed by Moneycontrol, the NBFC’s IPO will comprise a fresh issue of shares worth up to INR 885 Cr and an offer for sale (OFS) component of INR 565 Cr. The company has roped in Axis Capital, JM Financial. Nuvama and IIFL Securities as merchant bankers to helm the public issue.
The push for IPO is part of the NBFC’s strategy to strengthen its financial position and further shore up operations in the lending market.
Aye Finance is also strengthening its board and the top deck ahead of the IPO. The company’s board reportedly approved the appointment of Sanjay Sharma as managing director and ABC Impact’s director Aditya Misra as a non-executive non-independent director.
In a major rejig, the EGM also saw as many as five non-executive and non-independent directors, primarily investor representatives, stepping down from Aye Finance’s board over “personal reasons”.
The departures included Vivek Kumar Mathur of Elevation Capital, Alpha Wave India’s Navroz Darius Udwadia, Kartik Srivatsa from LGT Capital Invest Mauritius PCC, A91 Emerging Fund’s Kaushik Anand Kalyana Krishnan, and British International Investment’s Gaurav Malhotra.
This comes a couple of months after reports surfaced that the NBFC was planning an IPO in the range of INR 2,000 Cr to INR 3,000 Cr. At the time, it was reported that the company was “almost ready” to file its draft red herring prospectus (DRHP) with market regulator SEBI.
Founded in 2014 by Sanjay Sharma and Vikram Jetley, Aye Finance offers loans to small businesses across the country. It leverages its AI-powered credit assessment algorithms to assess risk in the absence of traditional business documents.
The development comes at a time when Aye Finance has been on a fundraising spree. In September, Singapore-based impact investor ABC Impact invested INR 250 Cr in the NBFC as part of its Series G round. A month prior to that, Aye Finance closed an INR 250 Cr loan securitisation deal with Goldman Sachs.
In June, the Alphabet-backed company bagged INR 250 Cr in debt from Dutch entrepreneurial development bank FMO, while it raised INR 137 Cr from German impact investment firm Invest In Visions in March this year.
Aye Finance’s net profit tripled to INR 161 Cr in the fiscal year 2023-24 (FY24) from INR 54 Cr in the previous year. Revenue jumped 67% to INR 1,072 Cr from INR 643.34 Cr in FY23.
Aye Finance’s assets under management (AUM) soared to INR 4,500 Cr at the end of FY24 from INR 2,700 Cr in FY23.
Discover more from FundingBlogger
Subscribe to get the latest posts sent to your email.