Alphabet-backed Aye Finance files for ₹1,450 crore IPO
What's the story
Gurugram-based non-banking financial company (NBFC) Aye Finance Limited has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The firm, backed by Google parent Alphabet, plans to raise ₹1,450 crore through an initial public offering (IPO).
The IPO will include a fresh issue of equity shares worth ₹885 crore and an offer for sale (OFS) of ₹565 crore by existing shareholders.
Financial growth
Aye Finance's financial performance and IPO details
Aye Finance reported a whopping 291.5% increase in profit after tax (PAT) to ₹171.7 crore in FY2024 from ₹43.9 crore in FY2023.
The company has a low net non-performing asset (NPA) ratio of 0.9% and a provision coverage ratio (PCR) of 72%.
As of September 30, 2024, its assets under management (AUM) stood at ₹4,980 crore, marking a 64% year-on-year growth.
Future plans
IPO proceeds to fuel business expansion
The proceeds from the fresh issue will be utilized to strengthen Aye Finance's capital base for future business expansion and asset growth.
The company currently serves over five lakh active customers through 478 branches across 18 states and three Union Territories.
It has also flagged the possibility of a pre-IPO placement of up to ₹177 crore, which would revise the fresh issue size.