The IPO pipeline is seeing traction after a brief lull, as NBFC firm Aye Finance is set to hit D-Street soon. The price band for the Rs 1,010 crore IPO has been announced.
The company, which focuses on lending to MSME enterprises, is all set to get listed on the exchanges by February 16.
Here are all the key details you should know about the IPO before your money goes to Aye.
Aye Finance IPO: Offer Size and Price Band
The offer is a book-built issue of Rs 1,010 crore, comprising a fresh issue of 5.5 crore shares worth Rs 710 crore and an offer for sale of 2.33 crore shares aggregating to Rs 300 crore. The company has fixed the price band at Rs 122–Rs 129 per share. Each equity share has a face value of Rs 2.
Aye Finance IPO: Subscription Schedule and Lead Managers
The IPO will open for public subscription on Monday, February 9, bid for three days, and close on Wednesday, February 11. The NBFC will open the anchor book on Friday, February 6.
After bidding, shares are expected to be allotted to eligible shareholders by February 12 and credited to their demat accounts by February 13, with the refund process also taking place on the same day.
The tentative date for the listing of the company on the NSE and BSE has been scheduled for February 16.
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management will manage the company’s IPO, while KFin Technologies is the registrar to the issue.
Aye Finance IPO: Minimum Investment and Lot Size
Retail investors can apply for a minimum of one lot, which consists of 116 shares. At the upper end of the price band, this translates into an investment of Rs 14,964.
Small NIIs (non-institutional investors) are required to bid for a minimum of 14 lots, amounting to Rs 2.09 lakh. For high NIIs, the lot size stands at 67 lots, equating to Rs 10.02 lakh.
Aye Finance IPO: Utilization of Funds
As per the company’s RHP, the net proceeds raised from the fresh issue will be utilised towards meeting its capital requirements and for payment of expenses related to the offer, such as BRLM fees, listing fees, etc.
It added that the raised capital is expected to help grow its business and improve its overall capital structure. During its media briefing, the company said that through the offer, it aims to increase its mortgage portfolio and leverage technology.
According to the company’s RHP, the raised capital will be utilised during FY27.
Aye Finance IPO: Major Risks
The NBFC’s major business comes from lending to micro and small enterprises, and any default in payment by borrowers could adversely affect its operations and finances. For Q2FY26, the company’s gross NPA stood at 4.85%.
Also, investors should watch out for risks pertaining to provisioning, unsecured loans, interest rate hikes, debt obligations, asset-liability mismatch, and high competition in the NBFC segment.