Aye Finance to Raise $15 Million via Non-Convertible Debentures

Gurugram-based non-banking financial company (NBFC) Aye Finance has received board approval to raise up to $15 million (approximately ₹125 crore) through the issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs). The fundraising exercise, conducted on a private placement basis, is designed to support the lender's ongoing mission to provide credit to underserved micro, small, and medium enterprises (MSMEs) across India.

Gurugram-based non-banking financial company (NBFC) Aye Finance has received board approval to raise up to $15 million (approximately ₹125 crore) through the issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs). The fundraising exercise, conducted on a private placement basis, is designed to support the lender's ongoing mission to provide credit to underserved micro, small, and medium enterprises (MSMEs) across India.

Strategic Capital Deployment

According to regulatory filings, each NCD will have a face value of ₹1 lakh. The debentures carry a five-year tenure, with principal repayments structured in five equal installments beginning 18 months after the deemed date of allotment, which was set for June 25, 2026.

The interest rates on these instruments are linked to specific currency or interest-rate hedging arrangements agreed upon with investors, with interest payments scheduled every six months. To secure the issue, Aye Finance has pledged a pool of its loan assets and receivables, committing to maintain collateral worth at least 1.1 times the outstanding debenture value throughout the duration of the debt.

Sustained Growth Post-IPO

This debt issuance follows a landmark period for the company, which successfully completed its initial public offering (IPO) earlier in 2026. The IPO, which featured a fresh issue of ₹710 crore and an offer-for-sale (OFS) of ₹300 crore, was aimed at strengthening the firm’s capital base for future growth.

Aye Finance continues to report strong operational metrics, with its assets under management (AUM) reaching ₹7,044 crore by the end of FY26, reflecting a 27% year-on-year growth. The company remains focused on providing small-ticket business loans and mortgage-backed financing solutions to its target customer base, which primarily consists of manufacturers, traders, and service providers.

Key Facts at a Glance

• Fundraising Goal: Up to $15 million (approx. ₹125 crore) through NCDs.

• Instrument Details: Secured, rated, listed, and redeemable NCDs with a face value of ₹1 lakh each.

• Tenure: 5 years, with principal repayments starting after 18 months.

• Collateral: Loan assets and receivables, maintained at 1.1x coverage.

• Operational Context: AUM stood at ₹7,044 crore as of the end of FY26.

FAQ

What is the purpose of this NCD issuance?

The funds are intended to strengthen Aye Finance’s capital base and support its lending operations, specifically for providing customized credit solutions to credit-starved MSMEs in India.

How is the security for these debentures structured?

Aye Finance has pledged a pool of its loan assets and receivables as collateral and is committed to maintaining a security cover of 1.1 times the outstanding debenture value.

What is the current scale of Aye Finance?

The company operates over 398 branches across 22 states and reported AUM of ₹7,044 crore at the close of the 2025-26 fiscal year.

Source: Aye Finance - BSE Filings, JM Financial Services Market News, The Head and Tale