Aye Finance IPO Details
Issue Date
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Price Range
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Lot Size
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IPO Size
N/A
Schedule of Aye Finance IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Aye Finance IPO
Aye Finance Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹885 crores, the offer for sale will include equity shares aggregating up to ₹565 crores. The shares will be credited to the demat account on TBA. The allotment of shares will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Aye Finance Ltd
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Augmenting their capital base to meet the company’s future capital requirements arising out of growth of their business and assets (referred to herein as the “objects”)
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The company expects to receive the benefits of listing of the Equity Shares on the stock Exchanges, including enhancement of the Company’s brand name and creation of a public market for equity shares in India
Aye Finance Ltd Valuation
Upper Price Band | TBA |
Fresh Issue | Up to ₹ 855 crores |
Offer for Sale | ₹565 crores |
EPS (in ₹) for FY 24 | 10.62 |
Aye Finance Ltd IPO Share Offer and Subscription Details
QIBs | Not less than 75% of the Offer size |
Non-institutional Investors (NIIs) | Not more than 15% of the Offer |
Retail-individual Investors (RIIs) | Not more than 10% of the Offer |
Industry Outlook
As of Fiscal 2024, secured retail loans reached ₹49.6 trillion and ₹50.9 trillion in first quarter of Fiscal 2025. It grew at a CAGR of 15% from Fiscal 2019 to Fiscal 2024. The Indian retail credit market has grown at a strong pace over the last few years and is expected to grow further at 14% to 16% between Fiscal 2024 and Fiscal 2027, with risks evenly balanced. The credit growth of NBFCs which has trended above India’s GDP growth historically, is expected to continue to rise at a faster pace. NBFCs have shown remarkable resilience and gained importance in the financial sector ecosystem, during fiscals 2019 to 2024, NBFC credit is estimated to have witnessed a growth at a CAGR of approximately 12%. NBFC Credit is expected to grow at a CAGR of 15% to 17% between Fiscal 2024 and Fiscal 2027.
Company Information
Aye Finance Ltd is a middle-layer NBFC (NBFC-ML) that provides loans to micro-scale MSMEs across India, offering business loans for working capital and expansion, secured through hypothecation or property collateral. It serves manufacturing, trading, service, and allied agriculture sectors, ranking among the leading NBFCs for underserved micro enterprises. As of September 30, 2024, it had 508,224 active customers across 18 states and three union territories, with an AUM of ₹49,79.76 crore (Source: CRISIL Report). Specialising in small-ticket loans averaging ₹0.015 crore, its expertise in underwriting business cash flows ensures stable credit costs and profitable growth.
Aye Finance Ltd Strengths
Leading provider of small-ticket loans to micro-scale MSMEs, offering comprehensive products and addressing a large, underserved TAM.
Aye Finance Ltd stands out in the micro-enterprise lending space as one of the few MSME-focused NBFCs offering both secured and unsecured loans, addressing a largely underserved customer segment (Source: CRISIL Report). Beyond loans secured against property, it has expanded its reach to businesses seeking financing through the hypothecation of working assets.
Strong sourcing capabilities with a diversified pan-India presence and strong customer retention.
The company's AUM grew from ₹1728.49 crore in March 2022 to ₹49,79.76 crore in September 2024, with disbursements reaching ₹3938.93 crore in Fiscal 2024. Its customer base expanded from 191,338 to 508,224 during the same period. Among peer MSME-focused NBFCs, it recorded the second-highest AUM growth per branch and the highest AUM growth per employee.
Effective Underwriting Methodology
The company's underwriting expertise, refined over the years, gives it a competitive edge in MSME lending, overcoming challenges like limited financial records and restricted access to traditional banks (Source: CRISIL Report). Its unique ‘business cluster-based’ underwriting, covering 70+ clusters as of September 30, 2024, enhances credit assessment in diverse sectors like shoe manufacturing in Agra and garment trading in Patna. Difficult to replicate, this approach is strengthened by proprietary data science, local market insights from branch locations, and a two-step process—initial evaluation at branches and centralised approvals—ensuring efficiency and rapid turnaround.
Strong multi-tiered collection capabilities.
The company’s collection processes are tailored to the repayment behaviours of its target customers, starting with registered ACH mandates to reduce cash collections. Customers receive timely reminders via SMS, voice bots, tele-calling, or field visits to enhance adherence. A strong field collection team, supported by data science models, optimises outcomes and tightly manages overdue buckets. As a result, its Stage 2 asset ratio was 1.67% as of September 30, 2024, and 1.04% as of March 31, 2024—the lowest among peer MSME-focused NBFCs during those periods.
Enhancing resilience through advanced technology.
The company follows a ‘phygital’ business model, integrating physical and digital channels to optimise operations. This approach supports cluster-based underwriting, cost-effective servicing of small-ticket loans (₹0.015 crore), and efficient monitoring and control. A flexible, cloud-based technology stack enables scalable operations without heavy capital expenditure. Core systems like LMS, LOS, CMS, HRMS, and ERP streamline processes, while ServoStream enhances workflow management across mobile and web platforms. Automation leverages APIs for data validation, digital payments, and KYC checks, with GPS tracking and field monitoring ensuring operational efficiency. A robust identity and access management system safeguard data security.
Risks of Aye Finance Ltd IPO
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They are subject to the risk of non-payment or default by their borrowers which may adversely affect their business, results of operations and financial condition.
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The company's operations rely on the accuracy of information from customers and third-party service providers. Any erroneous or misleading data could impact creditworthiness assessments and the valuation or title verification of collateral, potentially affecting lending decisions.
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A significant portion of the company's unsecured loans accounted for 41.47%, 33.89%, 37.91%, 30.26%, and 36.61% of the company’s AUM in the six months ended September 30, 2024, and 2023, and in Fiscals 2024, 2023, and 2022, respectively. Failure to recover these receivables on time or at all could negatively impact its business, operations, cash flows, and financial condition.
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The company is exposed to interest rate risk, as fluctuations in interest rates could impact its net interest income and net interest margin. Such volatility may adversely affect its operational results and cash flows.
All Financial Information about Aye Finance Ltd
Comparison with peers
Revenue from operations for Financial Year 2024 (in ₹ crore) | 1040.21 | 1018.64 | 2182.84 |
P/E for FY 24 | NA | 40.10 | 22.85 |
Return on Net Worth for FY 24 in % | 17.22 | 10.53 | 17.53 |
EPS in ₹ for FY 24 | 10.62 | 2.35 | 28.64 |
IPO Registrar and Book Running Lead Manager
KFinTechnologies Limited is the registrar of the Aye Finance Ltd IPO. The book-running lead managers are:
- Axis Capital Limited
- IIIFL Capital Services Limited(formerly known as IIFL Securities Limited)
- JM Financial Limited
- Nuvama Wealth Management Limited
Business Model
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. We offer 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.
The company follows a ‘phygital’ business model, integrating a high-touch branch approach with advanced digital capabilities. Its success depends on adapting to technological advances, evolving customer needs, and industry trends in a cost-effective and timely manner
Company Growth Trajectory
Aye Finance Ltd’s AUM grew at a CAGR of 60.69% between Fiscal 2022 and Fiscal 2024, reaching ₹4,979.76 crore as of September 30, 2024. It was the fastest-growing NBFC among peer MSME-focused NBFCs, with a 64.00% year-on-year AUM growth in Fiscal 2024 (Source: CRISIL Report). Its well-diversified presence ensures no single state contributes more than 15.00% of AUM, with the top five states collectively accounting for 53.54%. AUM distribution across four zones—North (34.91%), East (25.99%), West (22.49%), and South (16.61%)—supports balanced growth.
Aye Finance Ltd Profit and Loss
Total Income (in ₹ crore) | 1071.75 | 643.33 | 443.49 |
Profit Before Tax (in ₹ crore) | 227.85 | 71.39 | (67.41) |
Profit/Loss After Tax (in ₹ crore) | 171.67 | 43.85 | (51.35) |
EBITDA (in ₹ crore) | 568.93 | 280.80 | 101.10 |
EPS (in ₹) | 10.62 | 2.83 | (3.31) |
Aye Finance Ltd Cash Flow
Net Cash Used in Operating Activities (in ₹ crore) | (1322.82) | (720.19) | (271.87) |
Net Cash Used in Investing Activities (in ₹ crore) | 83.04 | 78.21 | 45.60 |
Net Cash Generated from Financing Activities (in ₹ crore) | 1493.74 | 761.66 | 199.66 |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 526.58 | 272.62 | 152.84 |
How to Check the Allotment Status of Aye Finance Ltd?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Bigshare Services Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Aye Finance Ltd
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of Bigshare Services Private Limited:
- Visit the website of KFin Technologies Limited
- Click on products.
- Click on IPO Allotment Status
- Choose the name of the company from the ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for Aye Finance Ltd?
Here are the steps to apply for Aye Finance Ltd:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
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