Aye Finance, which is backed by Alphabet, Elevation Capital, LGT Capital, and Alpha Wave India, has filed preliminary papers with the SEBI as it plans to raise Rs 1,450 crore via initial share sale.
It is a non-banking financial company – middle layer (NBFC-ML), providing loans to micro scale micro, small and medium enterprises (MSMEs) across India.
The initial public offering consists of fresh issuance of equity shares worth Rs 885 crore, and an offer-for-sale of Rs 565 crore worth shares by existing shareholders, as per the DRHP filed on December 16.
A91 Emerging Fund, Alpha Wave India, Alphabet (CapitalG International, and CapitalG LP), LGT Capital, MAJ Invest Financial, Harleen Kaur Jetley, and Vikram Jetley are the selling shareholders in the professionally managed company.
Elevation Capital V (formerly known as SAIF Partners India V) is the largest shareholder in Aye Finance with 16.19 percent stake, followed by LGT Capital Invest Mauritius 14.13 percent, and Alpha Wave India 11.21 percent.
Alphabet-owned CapitalG LP and CapitalG International hold 13.27 percent shares in Aye, while British International Investment's stake is 9.51 percent. Together A91 Emerging Fund and Waterfield Alternative Investments Fund own 10.48 percent shares of the company.
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The Gurgaon-based NBFC may raise Rs 177 crore before launching its IPO. If the said pre-IPO placement is completed, such amount will be reduced from the fresh issue size.
Aye Finance that competes with listed peers like SBFC Finance, and Five-Star Business Finance has recorded 291.5 percent growth in profit for the fiscal 2024 at Rs 171.7 crore, up significantly from Rs 43.8 crore in the previous fiscal. Net interest income grew by 68.8 percent to Rs 622.2 crore, compared to Rs 368.5 crore during the same period.
Profit in the six months period ended September 2024 stood at Rs 107.8 crore, growing 36.8 percent from Rs 78.8 crore in the same period last fiscal. Net interest income increased by 47.2 percent on-year to Rs 411 crore in the first half of FY25.
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management are appointed as the book running lead managers for the issue.
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