Aye Finance IPO Allotment Nears as GMP Slips
Aye Finance IPO Allotment Nears as GMP Slips
Muted investor interest for Aye Finance's IPO with 97% overall subscription; allotment due Feb 12 and a tepid GMP hinting at a cautious listing.
Aye Finance’s IPO opened for bidding from February 9 to 11, with shares offered in a price band of Rs 122-129 and a lot size of 116 shares. The company aimed to raise Rs 1,010 crore, 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 issue was overall subscribed 97%, attracting bids worth Rs 570.45 crore from about 43,800 applications. The portion reserved for qualified institutional bidders was subscribed 1.50 times, while retail investors and non-institutional investors remained undersubscribed at 77% and 5% respectively. The grey market premium had shown a sharp correction prior to the launch, with no premium currently observed in the unofficial market, suggesting a potentially muted listing day. Incorporated in 1993 and based in New Delhi, Aye Finance is an NBFC that provides secured and unsecured loans to micro-scale MSMEs for working capital, mortgage loans, and other financing options like Saral property loans and hypothecation loans. Lead managers to the issue included IIFL Capital Services, JM Financial, Axis Capital and Nuvama Wealth Management. The basis of allotment is expected to be finalized on February 12, with messages for fund debit or revocation of IPO mandates to bidders likely on February 13 or over the weekend. Investors will be watching closely to see if the muted demand translates into a subdued listing, given the broader market sentiment and the NBFC sector’s current positioning.
