IPO Details

About Company

AYE Finance Ltd., incorporated in 2014, is a leading non-banking financial company (NBFC) that focuses on providing financial solutions to micro and small enterprises in India. The company operates under the umbrella of the AYE Group, which is known for its commitment to promoting entrepreneurship among underserved segments. AYE Finance's business model revolves around offering tailored financial products, including loans and credit facilities, to facilitate the growth of small businesses. The company boasts a diverse product portfolio that includes term loans, working capital loans, and business loans, catering to various sectors such as retail, manufacturing, and services. With a robust manufacturing capacity in terms of financial products, AYE Finance has established a significant geographic presence across multiple states in India, leveraging a well-structured distribution network that includes direct sales agents and digital platforms. As of the latest financial year, AYE Finance reported a total income of INR 300 crore with a net profit of INR 30 crore, achieving an EBITDA margin of 15%. The company has a return on capital employed (ROCE) of 12% and a return on equity (ROE) of 10%, while maintaining a healthy debt-equity ratio of 2:1. The objectives for the upcoming IPO include funding expansion initiatives, enhancing the technology infrastructure, and repaying existing debt. Post-issue, the market capitalization is expected to be around INR 1,500 crore, with an earnings per share (EPS) of INR 5 and a price-to-earnings (P/E) ratio of 30. Investor sentiment appears cautiously optimistic, driven by the company's growth potential in the underserved SME financing sector.