Aye Finance's IPO saw 97% subscription on the final day. While QIBs showed strong interest, retail investors were more reserved. The company aims to use the proceeds to bolster its capital and expand its business in the underserved MSE sector. The listing is set for February 16.
Aye Finance: Navigating the IPO Waters with Bold Moves
Aye Finance's initial public offering (IPO) closed with 97% subscription on Wednesday, marking a significant milestone for the non-banking financial company.
Despite a sluggish start, the IPO did manage to draw substantial interest from qualified institutional buyers, who oversubscribed the segment by 1.5 times, while retail individual investors were more hesitant, achieving only 77% subscription. Non-institutional investors showed minimal interest with just 5% subscription.
Set to list on February 16, Aye Finance plans to allocate the Rs 1,010-crore proceeds towards strengthening its capital base and facilitating future expansions, particularly in the micro and small enterprises sector. The firm serves a significant market across 18 states and three Union Territories, aiming to bridge gaps left by traditional banking systems.
