Aye Finance, a non-banking financial company (NBFC), submitted its Draft papers to SEBI on December 16, 2024, to go public, and has gained SEBI approval to launch its IPO (Initial Public Offering).
The IPO consists of a mixture of a fresh issue of up to ₹885 crore and an offer for sale of up to ₹565 crore by its shareholders.
Axis Capital Limited, IIFL Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited are the issue’s book-running lead managers, and KFin Technologies Limited is its registrar.
Aye Finance Private Limited, incorporated on August 12, 1993, is one of the leading non-banking financial companies (“NBFCs”) involved in the business of offering financial loans to underserved micro-sale, small and medium enterprises (MSMEs) in India, serving around 508,224 active customers spanning 18 state and 3 union territories.
The company’s portfolio provides a diverse range of business loans to handle the working capital requirement and support the need to expand its business, backed by either business assets or property. These loans are available to its customers across manufacturing, trading, service, and allied agricultural sectors. Aye Finance has established itself as one of the leading companies in generating assets under management (“AUM”) of ₹49,797.64 million as of September 30, 2024.
The equity shares of the company are proposed to be listed on the National Stock Exchange Limited and the Bombay Stock Exchange Ltd.
Aye Finance IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Aye Finance Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹443.49 | ₹510.90 | ₹51.35 |
| 2023 | ₹643.34 | ₹571.94 | ₹43.85 |
| 2024 | ₹1,071.75 | ₹843.89 | ₹171.68 |
| September 2024 | ₹717.05 | ₹572.94 | ₹107.80 |
Aye Finance IPO Valuation – FY2024
Aye Finance IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹10.62 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 17.22% |
| Net Asset Value (NAV): | ₹76.47 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| SBFC Finance Limited | 2.35 | 40.10 | 10.53 | 27.49 | 1,018.64 Cr. |
| Five-Star Business Finance Limited | 28.64 | 22.85 | 17.53 | 178.05 | 2,182.85 Cr. |
Objects of the Issue
- Our Company proposes to utilize the Net Proceeds towards augmenting our capital base to meet our Company’s future capital requirements arising out of growth of our business and assets (referred to herein as the “Objects”)
- In addition, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including enhancement of our Company’s brand name and creation of a public market for our Equity Shares in India.
- The main objects clause and objects which are necessary for furtherance of the main objects as set out in our Memorandum of Association enables us to undertake our existing business activities and undertake the activities proposed to be funded from the Net Proceeds.
IPO Lead Managers aka Merchant Bankers
- Axis Capital Limited
- IIFL Capital Services Limited
- JM Financial Limited
- Nuvama Wealth Management Limited
