Aye Loan, a SME-focused non-banking loan provider, has hired four arrangers for its planned IPO. The company plans to raise Rs 1,700-2,000 crore in capital through the offering and is expected to go public within the next 9-12 months.
According to sources, the IPO would be handled by merchant bankers Axis Capital, JM Financial, Nuvama, and IIFL Securities. "A formal filing for the IPO should be completed within the next 1-2 months," according to one individual familiar with the situation.
In December of last year, the company raised Rs 310 crore as part of a Series-F investment from British International Investment (BII), the United Kingdom's development finance institution. Existing investors, including the Waterfield Fund of Funds and A91 Partners, also participated in the fund drive. With this round of funding, the company's valuation is believed to have increased by 30% from $250 million when Capital G (Google's venture capital fund) invested Rs 210 crore in it.
Until September 2023, the company raised around Rs 85,200 crore in stock capital.
According to India Ratings, its significant shareholders are Elevation Capital (19.86% on a diluted basis at the end of 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 owned 3.16% of the company, with the remainder held by the employee welfare trust (1.81%) and others.
Aye Finance ended FY24 with a loan book of Rs 4,473 crore and a net profit of Rs 161 crore, up from Rs 57 crore in FY23. The majority of Aye Finance's books are now concentrated in the unsecured loans area. The company specializes in working capital financing and mostly serves small and medium-sized businesses.
