SME-focused non-banking finance company Aye Finance has roped in four arrangers for its upcoming initial public offering. Aimed at raising Rs 1,700–2,000 crore of capital through the issuance, the company is said to targeting going public in the next 9–12 months.
According to sources, Axis Capital, JM Financial. Nuvama and IIFL Securities have been mandated to handle the IPO as merchant bankers. “In the next 1–2 months a formal filing for the IPO should be through,” said a person aware of the matter.
In December last year, the company raise Rs 310 crore as part of Series- F round from British International Investment (BII), the United Kingdom’s development finance institution. Existing investors such as Waterfield Fund of Funds and A91 Partners also participated in the fund raise. With this round of fund raise, the company’s valuations was said to have appreciated by 30 percent from $250 million when Capital G (Google’s venture capital fund) invested Rs 210 crore in it.
Until September 2023, the company has raised approximately Rs 85, 200 crore of equity capital.
According to a report by India Ratings, it’s major shareholders are Elevation Capital (19.86% holding on diluted basis, at end-September 2023), LGT Capital (17.38%), Capital G (16.43%), Falcon Edge (now Alpha Wave at 13.32%), A91 (10.32%) and MAJ Invest (7.11%). Promoter Sanjay Sharma held a 3.16% stake in the company, while the rest was held by employee welfare trust (1.81%) and others.
Closing FY24 with a loan book of Rs 4,473 crore and net profit of Rs 161 crore, up from Rs 57 crore in FY23, a bulk of Aye Finance’s books are presently concentrated in the unsecured loans segment. The company specialises in providing working capital finance and is largely focused on small and medium enterprises.
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