Finance IPO Opens: The IPO of Gurugram’s non-banking finance company (NBFC) Aye Finance will open today. Investors can bid till 11 February. The company wants to raise ₹1,010 crore from this issue. Before the IPO officially opened, the company raised ₹454.5 crore from anchor investors on February 6. The company allotted 3.52 crore shares to 19 anchor investors at the upper price band.

Nippon Life and Goldman Sachs are the largest investors

Many big global and domestic names showed interest in the company’s anchor book. The biggest investors were Nippon Life India and Goldman Sachs Funds, both of which bought shares worth ₹74 crore. Other global investors participating in this include Bay Pond, Société Générale, BNP Paribas and Ashok India Equity Investment Trust.

Price Band: ₹122 to ₹129

The company has fixed the price band at ₹122 to ₹129 per share. Investors can bid for a minimum lot of 116 shares, which would entail an investment of ₹14,964 at the upper end of the price band. Maximum investment is ₹1,94,532.

The funds will be used for business expansion

Aye Finance is a company that provides loans to Micro, Small and Medium Enterprises (MSMEs). The company said that the new funds (₹710 crore) raised from the IPO will be used to strengthen its capital base. This will provide the company with the necessary capital for future business and asset growth.

What is IPO?

When a company issues its shares to the public for the first time, it is called Initial Public Offering (IPO). Companies need money to expand their business. Instead of taking loans from the market, companies raise money by selling some shares to the public or issuing new shares. That is why companies bring IPO.