Aye Finance to consider ₹200 cr NCD issue after IPO
The board committee will meet on July 23 to approve up to ₹200 crore in secured debentures, with a ₹20 crore greenshoe option. The move follows a ₹1,010 crore IPO in February and aims to lower borrowing costs.
— 4 earlier stories on AYE Finance Ltd. →What's new
- The working committee of ALCO will meet on July 23 to approve NCD issue
- Up to ₹200 crore in secured, non-convertible debentures, plus ₹20 crore greenshoe
- Private placement follows February IPO of ₹1,010 crore and a recent credit upgrade to IND A+
Why this matters
At 4.8% of market cap, the issuance is material for a mid-cap NBFC. It signals Aye's intent to diversify funding sources and reduce borrowing costs after the IPO's equity cushion. The coupon rate will indicate whether the improved credit rating translates to lower borrowing costs.
What we're watching
- Final terms of the NCD, especially coupon rate and tenure
- Impact on debt levels—debt/equity currently at 2.73
- Whether this replaces or supplements the ₹4,000 cr debt raise proposal from July 15
The full read
Aye Finance's working committee of the Asset-Liability Committee will meet on July 23 to consider issuing up to ₹200 crore in secured, non-convertible debentures, with a ₹20 crore greenshoe option. The private placement follows the NBFC's ₹1,010 crore IPO in February and a credit rating upgrade to IND A+ in June. At 4.8% of its ₹4,151 crore market cap, the debt raise is material. Aye's loan book stood at ₹7,044 crore at end-FY26, and it has been working to lower borrowing costs. The announcement is the first public disclosure of this specific fundraise, adding to a prior proposal for a ₹4,000 crore debt raise disclosed on July 15. The final coupon rate and tenure will be the key test for the cost of new debt.
Questions answered
- Why is Aye Finance issuing NCDs now?
- The company is likely capitalising on its improved credit rating (IND A+ received in June) and recent IPO proceeds to raise cheaper debt. The funds will help grow its loan book, which stood at ₹7,044 crore at end-FY26.
- How large is this issue relative to the company?
- The ₹200 crore base issue equals about 4.8% of Aye's ₹4,151 crore market cap, crossing the 3% materiality threshold for a mid-cap NBFC.
- What is the greenshoe option for?
- The ₹20 crore greenshoe gives underwriters the option to purchase additional debentures if demand exceeds the base issue, allowing Aye to raise up to ₹220 crore in total.
- How does this fit with Aye's recent ₹4,000 crore debt raise proposal?
- The ₹200 crore issue is separate from the earlier ₹4,000 crore proposal announced on July 15. Both indicate a plan to access the debt market multiple times post-IPO.
- What are Aye Finance's current financials?
- For the March 2026 quarter, Aye reported sales of ₹528 crore and net profit of ₹86 crore. Loan book was ₹7,044 crore at end-FY26, with a debt/equity ratio of 2.73.
AYE Finance Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on AYE →- 20 Jul 2026 · 7:21 PM IST Aye Finance to consider ₹200 cr NCD issue after IPO
- 6d ago AYE Finance eyes ₹4,000 cr debt raise, near its entire market cap
- 15d ago AYE Finance AUM rises 28% to ₹7,329 cr, GNPA eases to 4.57%
- 27d ago AYE Finance gets one-notch credit upgrade to IND A+ after IPO
- 47d ago AYE Finance eyes first foreign-currency debt to fund micro-lending growth