Non-banking financial company (NBFC) Aye Finance Ltd has officially embarked on the journey to its public listing, setting the stage for a significant financial milestone. During an extraordinary general meeting (EGM) held on December 11, the company’s board approved plans to raise up to INR 1,450 crore through an initial public offering (IPO).
According to filings accessed by Moneycontrol, the proposed IPO will feature a fresh issue of shares worth INR 885 crore and an offer for sale (OFS) component valued at INR 565 crore. To execute the public issue, Aye Finance has enlisted leading merchant bankers, including Axis Capital, JM Financial, Nuvama, and IIFL Securities.
The IPO aligns with Aye Finance’s strategy to strengthen its financial standing and expand its footprint in the competitive lending market. The infusion of funds from the IPO is expected to provide the necessary capital to fuel its growth initiatives and enhance its operational capabilities.
Ahead of the IPO, Aye Finance is also focusing on strengthening its leadership team and board composition. The board approved the appointment of Sanjay Sharma as Managing Director, reflecting the company’s intent to solidify its executive leadership. Additionally, Aditya Misra, Director at ABC Impact, has been appointed as a Non-Executive Non-Independent Director, bringing valuable expertise to guide the company’s strategic direction.
Founded in 2014, Aye Finance has carved a niche in the lending sector, particularly catering to micro, small, and medium enterprises (MSMEs). The company’s innovative financial solutions and deep market penetration have positioned it as a key player in addressing the credit needs of underserved businesses.
The IPO is expected to bolster Aye Finance’s ability to meet the growing demand for credit among MSMEs while enhancing its financial flexibility. By leveraging the capital raised, the company aims to scale its operations, improve its service offerings, and maintain its competitive edge in the lending market.
With the backing of prominent merchant bankers and a clear strategic vision, Aye Finance is poised to make a significant impact through its IPO. This move marks a crucial step in its growth trajectory, paving the way for greater financial inclusion and expanded opportunities in the MSME sector.
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