Aye Finance debuts flat, lists at issue price
Aye Finance debuts flat, lists at issue price
Aye Finance trades at Rs 129 on debut, matching the IPO price and signaling a cautious start for the NBFC's market listing.
Aye Finance, the New Delhi-based shadow lender, made a muted market debut on Monday as the stock opened and traded at Rs 129 on both BSE and NSE, exactly at the upper end of its Rs 122-129 price band. The listing price reflects a restrained investor appetite on day one, with no immediate profit or loss for those who participated in the IPO.
The company raised Rs 1,010 crore from its IPO, comprising a fresh issue of Rs 710 crore and an offer-for-sale of up to 2.32 crore shares worth Rs 300 crore. The overall subscription stood at 97 percent, with qualified institutional buyers (QIBs) bidding 1.5 times their reserved portion. Retail and non-institutional investors (NIIs) were undersubscribed at 77 percent and 5 percent, respectively.
Aye Finance, incorporated in 1993 and based in New Delhi, is an NBFC focused on secured and unsecured small business loans for working capital, including Saral property loans and mortgage loans, primarily serving micro-scale MSMEs. The brokerage community offered mixed views on the issue, with some recommending subscription while others urged caution about valuation and listing dynamics.
Ahead of the debut, markets looked for clues from the pricing and demand mix, but the first trading session ultimately delivered a flat listing relative to the offer price, signaling a wait-and-see stance among investors regarding the company’s growth trajectory in the MSME lending space.
Brokerage sentiment underscored the softer listing, and investors will be watching follow-on trading to gauge demand for Aye Finance’s loan-book expansion and risk management as it scales its micro-entrepreneur lending model.
