Aye Finance shares make a flat market debut; shares list at the issue price

Shares of Aye Finance made a muted stock market debut on Monday, February 16 as the shadow lender was listed for its maiden trading session at Rs 129 on both BSE Ltd and NSE, which is also the issue price for the issue. Investors made no profit or loss on their investments.

The listing of Fractal Analytics has been better-than-the expectations. Ahead of its debut, shares of Aye Finance were commanding a grey market discount of Rs 3-4 apiece, suggesting a listing 2-3 per cent below its IPO price. However, the company was commanding a no grey market premium (GMP) during the bidding phase.

The IPO of Aye Finance was open for bidding between February 09 and February 11. It had offered its shares in the price band of Rs 122-129 per share with a lot size of 116 shares. The company raised a total of Rs 1,010 crore via IPO, which included a fresh shares sale of Rs 710 crore and offer-for-sale (OFS) up to 2.32 crore shares worth Rs 300 crore.

The issue was overall subscribed only 97 per cent, attracting bids for only Rs 570.45 crore through just 43,800 applications. The portion for qualified-institutional bidders (QIBs) was subscribed 1.50 times. The portion for retail bidders and non-institutional investors (NIIs) remained undersubscribed at only 77 per cent and only 5 per cent bidding, respectively.

Incorporated in 1993, New Delhi-based Aye Finance is an NBFC offering secured and unsecured small business loans for working capital, including mortgage loans, ‘Saral’ Property Loans, secured and unsecured hypothecation loans, primarily to micro-scale MSMEs.

Brokerage firms had mixed reviews on the issue, with some suggesting to subscribe to it, while others suggesting to avoid the issue. IIFL Capital Services, JM Finance, Axis Capital and Nuvama Wealth Management served as the book running lead managers for the Aye Finance IPO and KFin Technologies Ltd was appointed as the registrar of the issue.