Summary of this article
Aye Finance IPO enters day three of subscription window
Aye Finance IPO GMP indicates muted listing prospects
Aye Finance’s initial public offering (IPO) entered its third and final day of subscription window on February 11. The non-banking finance company’s IPO opened for subscription on February 9.
Aye Finance IPO Subscription Status
At the time of writing, Aye Finance’s IPO had been subscribed 17 per cent, or 0.17 times the total issue. So far, investors have applied for a total of 7.74 million shares out of 45.53 million shares on offer.
Retail individual investors applied for 52 per cent of the shares, at 4.31 million shares against 8.28 million shares allotted for them. Qualified institutional buyers (QIBs) subscribed for 3.19 million shares out of 24.84 million shares reserved for them. Non-institutional investors (NIIs) have so far subscribed only 240,932 shares out of 12.42 million shares allotted for them.
Aye Finance IPO GMP Today
According to multiple websites that track the grey market price of shares, the grey market premium (GMP) of Aye Finance’s public issue is nil, the same as day before. The GMP indicates muted prospects of the company’s shares on listing, dropping from a GMP of Rs 5 seen on February 4, before the subscription window opened.
The shares of the NBFC may see flat listing at the upper end of the price band of Rs 129 if the GMP continues to be nil.
Aye Finance IPO Details
Aye Finance seeks to raise Rs 1,010 crore through a fresh issue of shares as well as an offer-for-sale (OFS) component. The company plans to raise up to Rs. 710 crore through a fresh issue of 55.04 million equity shares. The OFS consists of 23.26 million shares, totaling up to Rs. 300 crore.
The public issue has been set in a price band of Rs 122-129 per share, with a lot size of 116 shares. Retail investors will have to invest a minimum of Rs. 14,964 at the upper end of the price band to apply for the issue.
For NIIs, the minimum application size is Rs. 2.09 lakh for small investors, and Rs 10.02 lakh for big investors.
The shares are likely to be allotted on February 12, and the stock is scheduled to be listed on both the NSE and the BSE on February 16. Axis Capital, IIFL Capital Services, JM Financial and Nuvama Wealth Management have been assigned as the book-running lead managers, and KFin Technologies is the registrar.
Aye Finance IPO Objective
According to the red herring prospectus, Aye Finance will use the proceeds from the fresh issue to strengthen its capital base and support the growth of its business and asset portfolio.
The company said it also “expects to receive the benefits of listing of the equity shares on the stock exchanges, including enhancement of the company’s brand name and creation of a public market for its equity shares in India.”
