Aye Finance IPO Subscribed 97% on Share Basis; QIBs Drive Demand Shares are set to list on February 16.
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Aye Finance Ltd.'s INR 1,010 crore initial public offering (IPO) received bids exceeding the issue size in value terms, even though the share sale was subscribed 97 percent based on the total number of shares bid at the close on Wednesday.
According to the company, the IPO was fully covered when calculated at the upper end of the price band. Exchange data showed subscription below 100 percent on a share basis, as the 97 percent figure was worked out using the floor price of INR 122 per share. The company said most investors placed bids closer to the cap price of INR 129 per share.
Demand was largely driven by qualified institutional buyers (QIBs), whose portion was subscribed 1.5 times. QIBs bid for 3.74 crore shares against 2.48 crore shares reserved for them. Within this category, foreign institutional investors submitted bids for 2.84 crore shares. Domestic financial institutions applied for 21.70 lakh shares, mutual funds for 42.75 lakh shares, and other institutional investors for 23.39 lakh shares.
Retail investors subscribed 77 percent of their allocation, bidding for 63.56 lakh shares compared with 82.78 lakh shares on offer. Of these, 53.67 lakh shares were bid at the cut-off price, while 9.88 lakh shares were placed through price bids.
The non-institutional investor segment saw lower participation, with subscription at 5 percent. Investors in this category bid for 6.23 lakh shares against 1.24 crore shares available. Applications above INR 10 lakh were subscribed 2 percent, while those in the INR 2 lakh to INR 10 lakh range reached 11 percent.
The IPO includes a fresh issue of INR 710 crore and an offer for sale of INR 300 crore. Shares are set to list on February 16.
Proceeds from the fresh issue will strengthen the company's capital base and support its ongoing business expansion plans.
