Rs 1,010-crore Aye Finance IPO booked 97%: Everything to know ahead of listing

Gurugram-based non-banking financial company (NBFC) Aye Finance's initial public offer (IPO) concluded on Wednesday, almost making it to the finishing line. At the end of three days of bidding, the issue secured an overall subscription of 97 per cent. The Aye Finance IPO -- to raise up to Rs 1,010 crore -- was a mix of fresh equity and an offer for sale (OFS).

Under the IPO, which had opened on Monday, potential investors could bid for shares in a range of Rs 122-129 apiece in lots of 116 units.

Subscription update

Add Zee Business as a Preferred Source

At the end of the bidding process on Wednesday, the IPO stood at an overall subscription of 97 per cent, with bids for 4.42 crore shares versus the total 4.55 crore shares on offer, according to provisional exchange data.

Together with the IPO of Fractal Analytics, this marks the first mainboard IPOs in more than two weeks.

Here are key things to know about Aye Finance:

Price band & lot size: Under the Aye Finance IPO, shares were available for bidding between 10 am and 5 pm for three trading days, from February 9 to February 11.

The price band of Rs 122-129 translates to Rs 14,152-14,964 per lot. In other words, bidders were required to shell out up to Rs 14,964 at a time to participate in the offer.

Fresh equity: The IPO included fresh equity worth up to Rs 710 crore. This is the amount of proceeds that will go to the company.

The remaining Rs 300 crore was through the OFS.

Listing date: The Aye Finance stock is set to be listed on both main bourses tentatively on February 16.

Company profile: Non-banking financial services company Aye Finance offers secured and unsecured small business loans for working capital primarily to micro-scale MSMEs.

Its business loans enable customers to undertake business expansion, serving a range of sectors, including manufacturing, trading and allied agriculture segments.

Financials: Here's a summary of the company's annual financial performance from FY23 to FY25:

Revenue, PAT and borrowings numbers in crore rupees

Anchor investors:

Prior to the IPO, Aye Finance raised a sum of Rs 460.5 crore from anchor investors, including Nippon Life India Trustee, Bay Pond Partners, Goldman Sachs Funds, Ashoka India Equity Investment Trust and BOI MF.

Here are answers to a few frequently asked questions (FAQs) on mainboard IPOs:

What is a mainboard IPO? How is it different from an SME IPO?

A mainboard IPO is an initial public offer by a company that lists on the main exchanges NSE and BSE.

These IPOs are usually larger in size and come from relatively established companies.

Companies have to pass stricter norms and financial requirements in order to qualify for mainboard IPOs.

They also require higher minimum investment and attract wider institutional participation.

Who can invest in a mainboard IPO?

All categories of investors who can participate in mainboard IPOs are eligible to participate in SME IPOs.

These include qualified institutional buyers, non-institutional investors and retail individual investors.

Can all investors participate equally?

No, strict limits are defined for different types of investors for participating in mainboard as well as SME IPOs.

What is the minimum investment in a mainboard IPO?

For retail investors, the minimum investment is typically one lot, which is usually almost Rs 15,000.

The price varies from IPO to IPO.

How is a mainboard IPO priced?

The company sets a price band in consultation with merchant bankers.

What is book building?

Book building is a process where investor demand at various price levels is collected to determine the final issue price of the IPO.

97 4.42

achieve full subscription 16 per cent subscription to its