Aye Finance is selling its shares in the price band of Rs 122-129 apiece, applied for a minimum of 116 shares and its multiples to raise Rs 1,010 crore between February 9-11.

Aye Finance IPO sails through on day 3; check bidding status, latest GMP & more

Aye Finance IPO Sees Institutional Bidders Drive Subscription, Despite Muted Investor Interest

The initial public offering (IPO) of Aye Finance has successfully navigated the third and final day of bidding, led by institutional bidders, despite a subdued response from investors.

Key Highlights:

Subscription numbers: 96% of the total shares offered were bid for, with 4,38,93,124 equity shares subscribed.
Subscription categories: QIBs subscribed 1.50 times, while retail investors subscribed 73%, and NIIs subscribed a mere 5%.
Price band: The IPO is priced at Rs 122-129 apiece, with investors able to apply for a minimum of 116 shares.
Fundraising: Aye Finance aims to raise Rs 1,010 crore, comprising a fresh share sale of Rs 710 crore and an OFS of up to 5.50 crore equity shares.

About Aye Finance:

Aye Finance, incorporated in 1993, is an NBFC offering secured and unsecured small business loans for working capital, including mortgage loans, 'Saral' Property Loans, and secured and unsecured hypothecation loans primarily to micro-scale MSMEs.

Analyst Views:

SMIFS: "We recommend investors to subscribe to the issue with a long-term investment horizon, supported by structural industry tailwinds, scalable business model, and potential for long-term value creation."
Choice Broking: "The issue is priced at a post-issue P/BV of 1.3 times, below the peer average. The discount appropriately reflects its elevated GNPAs and credit costs, offering a risk-adjusted entry point for long-term investors."

Listing Details:

Aye Finance has reserved 75% of the issue for QIBs, 15% for NIIs, and 10% for retail investors. The company shall command a market capitalization close to Rs 3,185 crore at the current valuations. Shares of the company shall be listed on both BSE and NSE on Monday, February 16.