Aye Finance gets SEBI go-ahead for IPO, according to sources

Google parent Alphabet-backed non-banking lender Aye Finance has received final observations from the Securities and Exchange Board of India on its draft red herring prospectus, indicating that it can go ahead with its initial public offering, sources said.

There has been no response from Aye Finance so far, to an email sent seeking confirmation on the development.

The Gurugram-based NBFC, which lends to micro, small and medium enterprises, had filed for a ₹1,450-crore IPO in December last year. The company plans to raise up to ₹885 crore through a fresh issue, and the remainder would be an offer for sale by a number of selling shareholders, including Alphabet, LGT Capital Invest Mauritius PCC with Cell E/VP, A91 Emerging Fund, Alpha Wave India, and MAJ Invest Financial Inclusion.

In FY24 the lender reported a net profit of ₹171.7 crore on total revenue of ₹1,040 crore, both metrics showing strong growth from the previous year. In the six months to September 2024, it reported net profit of ₹107.8 crore on revenue of ₹692.2 crore.

The proceeds from the fresh issue will be used by the finance company to boost its capital base and meet its future capital requirements.

At the time of filing the DRHP, the company had indicated a pre-IPO placement of around ₹177 crore, and in such an event, the fresh issue size would be reduced to that extent.

Published on April 4, 2025