Big Money Bets on Aye Finance: Gurgaon-based non-banking finance company Aye Finance has successfully raised over Rs 454 crore from anchor investors, just days before the opening of its much-anticipated Rs 1,010-crore initial public offering (IPO). The anchor allotment was completed on February 6, setting a strong tone for the public issue that opens for subscription on February 9 and closes on February 11.
The robust anchor response highlights strong institutional confidence in Aye Finance’s business model and growth prospects, particularly in the micro and small enterprise (MSE) lending space, where the company has built a niche presence.
IPO Structure and Details
The Aye Finance IPO is a mix of fresh capital infusion and partial exit by existing shareholders. The public issue comprises:
- Fresh issue of equity shares worth Rs 710 crore
- Offer-for-sale (OFS) of shares worth Rs 300 crore
This takes the total issue size to Rs 1,010 crore.
The IPO has been priced in a band of Rs 122 to Rs 129 per equity share, with the anchor investors allotted shares at the upper end of the price band. As per the company’s filing, Aye Finance has allotted 3.52 crore equity shares to anchor investors, raising Rs 454.5 crore ahead of the public issue.
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Who Are the Anchor Investors?
The anchor book saw participation from 19 institutional investors, including prominent domestic and global names. Among them, Nippon Life India and Goldman Sachs Funds emerged as the largest investors, each picking up shares worth Rs 74 crore.
Several well-known global and institutional investors also participated in the anchor round, reflecting international interest in India’s NBFC sector. These included:
- Bay Pond
- Ithan Creek Master Investors
- Integrated Core Strategies
- Societe Generale
- Ashoka India Equity Investment Trust
- BNP Paribas Financial Markets
On the domestic side, the anchor book featured a strong presence of Indian institutional investors such as:
- Abakkus
- HDFC Life Insurance
- 360 ONE
- Turnaround Opportunities Fund
- Bank of India Mutual Fund
- Neo Prime Fund
In an official statement, Aye Finance noted that out of the total 3.52 crore equity shares allotted to anchor investors, 76.74 lakh shares were allocated to two domestic mutual funds across four schemes. This participation by domestic mutual funds is often seen as a positive signal for retail investors, as it reflects long-term institutional interest.
IPO Timeline and Subscription Details
The IPO will open for public subscription on February 9 and close on February 11. Following the closure of the issue, the basis of allotment is expected to be finalised shortly thereafter, with listing on the stock exchanges likely to follow within the standard timeline.
Retail investors, along with qualified institutional buyers (QIBs) and non-institutional investors (NIIs), will have the opportunity to participate during the three-day subscription window.
Why the Anchor Response Matters
A strong anchor book is often viewed as a vote of confidence in an IPO. The participation of marquee global investors and large domestic institutions suggests that Aye Finance’s business fundamentals, asset quality, and growth strategy have resonated well with long-term investors.
Anchor investors are typically subject to lock-in periods, which means a portion of the allotted shares cannot be sold immediately after listing. This can help stabilise the stock in the initial days of trading and reduce volatility.
About Aye Finance
Aye Finance is a Gurgaon-headquartered NBFC that focuses on providing customised credit solutions to micro and small enterprises across India. The company primarily caters to underserved business segments, offering loans to small manufacturers, traders, and service providers who often face challenges accessing traditional bank credit.
Over the years, Aye Finance has leveraged data-driven underwriting and on-ground presence to scale its operations across multiple states, positioning itself as a specialised lender in the MSME ecosystem.
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What Investors Will Watch Closely
As the IPO opens on February 9, investors will closely track:
- Subscription levels across retail, NII, and QIB categories
- Valuation comfort at the upper price band of Rs 129
- Broader market conditions during the subscription window
- Post-listing performance, especially given the strong anchor backing
With the anchor round already oversubscribed by high-quality institutional investors, market participants will be keen to see whether the momentum carries forward into the public subscription.
