Aye Finance IPO opens: Should you subscribe? Check GMP and other details
Founded in 1993, Aye Finance is an NBFC that provides secured and unsecured loans to micro and small businesses. Its products include working capital loans, mortgage-backed loans and property-based financing for businesses in manufacturing, trading and services.
The initial public offering (IPO) of non-banking finance company Aye Finance opened for subscription on Monday, February 9, offering investors exposure to the growing MSME lending space. The issue will close on February 11 and the shares are expected to list on the BSE and NSE on February 16.
ISSUE DETAILS AND INVESTMENT SIZE
Aye Finance’s IPO is a book-built issue worth Rs 1,010 crore. It consists of a fresh issue of 5.50 crore shares aggregating to Rs 710 crore and an offer for sale of 2.33 crore shares worth Rs 300 crore.
The price band has been set at Rs 122 to Rs 129 per share. The minimum lot size is 116 shares, which requires a retail investment of Rs 14,964 in the upper price band. The allotment is likely to be finalised on February 12. The latest grey market premium is nil, suggesting a flat listing expectation.
COMPANY PROFILE AND BUSINESS FOCUS
Founded in 1993, Aye Finance is an NBFC that provides secured and unsecured loans to micro and small businesses. Its products include working capital loans, mortgage-backed loans and property-based financing for businesses in manufacturing, trading and services.
The company currently serves over 5.8 lakh active customers across 18 states and three union territories, with a strong presence in small-ticket MSME lending.
Master Capital Services said, “The NBFC sector has demonstrated steady and resilient growth underscoring their strong positioning in granular MSME lending.”
GROWTH OUTLOOK
Highlighting Aye Finance’s positioning, the brokerage added, "Aye Finance Limited, as an NBFC-ML focused on MSME lending, is strategically positioned to capitalise on the sustained growth opportunity in the segment. With its focus on small-ticket, secured, and semi-secured business loans, the company caters to underserved micro enterprises that remain largely outside the formal credit ecosystem. Investors may consider the IPO as a potential long-term investment opportunity," said Master Capital Services.
As credit demand from small businesses continues to rise, Aye Finance’s IPO is expected to draw attention from investors looking at the MSME financing theme.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)