Aye Finance Approves Up to ₹40 Billion Fundraise via Debentures

GURUGRAM, India — Non-Banking Financial Company Aye Finance Limited (NSE: AYE, BSE: 544699) approved a proposal to raise up to ₹40 billion (₹4,000 crore) through the issuance of Non-Convertible Debentures (NCDs) on Wednesday, July 22, 2026.

The corporate fundraising plan was considered and cleared by the Board of Directors alongside the approval of the company’s first-quarter (Q1 FY27) financial results. In regulatory filings submitted to stock exchanges, the micro-scale enterprise lender confirmed that the debt securities will be issued in one or more tranches on a private placement basis, subject to regulatory and shareholder approvals. The capital injection aims to strengthen the company’s long-term liquidity profile and support double-digit growth in its loan portfolio.

Strategic Capital Utilization and Operational Performance

The ₹40 billion debt program aligns with Aye Finance's broader strategy to expand its Assets Under Management (AUM) and double its lending book over the medium term.

During the first quarter ended June 30, 2026, Aye Finance reported a 28% year-on-year growth in AUM to ₹7,329 crore. Standalone net profit for Q1 FY27 expanded significantly to ₹74.5 crore, supported by a 22% increase in disbursements and steady improvements in asset quality, with gross non-performing assets (GNPAs) moderating to 4.49%.

Enhanced Credit Rating and Borrowing Dynamics

The fundraising initiative follows a recent credit rating upgrade by India Ratings and Research (Ind-Ra), which elevated Aye Finance's long-term debt instruments to 'IND A+' with a Stable outlook.

The higher rating reflects the company's strengthened capital adequacy following its successful initial public offering (IPO) earlier in the year, alongside a rising share of secured mortgage products in its overall loan mix. The 'IND A+' rating is expected to lower the company's marginal cost of borrowings across private placement debt markets.

Official Sources Section

Regulatory approvals, financial statement disclosures, and debt issuance notices were formally submitted to the National Stock Exchange of India (NSE) and BSE Limited pursuant to SEBI regulations, with detailed operational updates published on the Aye Finance Official Portal.

Quote Section

"According to corporate disclosures filed with domestic stock exchanges on July 22, 2026, the Board of Directors of Aye Finance Limited has approved a proposal to raise up to ₹40 billion via Non-Convertible Debentures in tranches, strengthening liquidity to support credit growth in the micro-MSME sector."

Why It Matters

• For Micro-Scale MSMEs: Expands access to working capital and business expansion loans for unbanked micro-enterprises.

• For Fixed-Income Investors: Offers institutional debt investors access to rated corporate debentures backed by an 'IND A+' NBFC balance sheet.

• For Capital Market Analysts: Demonstrates institutional funding capacity among non-bank lenders following public listing and rating upgrades.

Key Facts at a Glance

• Fundraising Approval: Up to ₹40 billion (₹4,000 crore) via NCDs.

• Issuance Structure: Private placement mode across multiple tranches.

• Q1 FY27 Net Profit: ₹74.5 crore (up ~143% YoY).

• Credit Rating: Upgraded to 'IND A+' / Stable by India Ratings.

Frequently Asked Questions (FAQ)

What is the total fundraising amount approved by Aye Finance?

Aye Finance has approved raising up to ₹40 billion (₹4,000 crore) through the private placement of Non-Convertible Debentures (NCDs).

How will the proceeds from the NCD issuance be used?

The capital raised through the NCD program will be utilized to fund business growth, expand loan disbursements to micro-scale MSMEs, and diversify borrowing sources.

On which stock exchanges are Aye Finance shares listed?

Aye Finance Limited is listed on the National Stock Exchange of India (NSE) under symbol AYE and on BSE Limited under security code 544699.

Source: Official regulatory disclosures submitted to BSE Limited and the National Stock Exchange of India (NSE) by Aye Finance Limited, with credit rationale published by India Ratings and Research.