Recently listed NBFC Aye Finance’s WALCO (working committee of asset and liabilities committee of board of directors) has approved the offer and issuance of “senior, secured, rated, listed, redeemable, transferable, non-convertible debentures” of up to INR equivalent of $15 Mn. 

According to the exchange filing, Aye Finance will issue the NCDs on a private placement basis, with a face value fixed at ₹1 Lakh per debenture. The securities will be allotted on June 25, with a maturity tenure of five years, and will be listed on the BSE’s Wholesale Debt Market Segment. 

The coupon rate will be determined based on currency or interest hedging agreements structured with investors. 

“The interest on the debentures shall be payable on a semi-annually basis on the last day of each coupon period and the principal shall be redeemed in 5 equal instalments commencing from 1.5 years from the date of allotment in accordance with the debenture trust deed to be executed between the company and the debenture trustee and all other transaction documents,” the company’s filing read.

Any failure to meet coupon or redemption timelines, or an uncured event of default, will attract a default interest rate of 2% per annum over the agreed coupon rate on the unpaid amount. 

For the fundraise, Aye Finance will provide investors with security in the form of pledged loan assets and receivables. These assets, along with future receivables and related proceeds, will be placed under a first-ranking exclusive charge in favour of the debenture trustee. The company has also committed to maintaining the value of these pledged assets at a minimum of 1.1X the outstanding debenture amount at all times until the debentures are fully redeemed.

The fund raise comes within months of the NBFC completing its initial public offering. The company’s IPO consisted of a fresh issue of shares worth ₹710 Cr and an offer-for-sale component of ₹300 Cr. The fresh proceeds were planned to be used to meet the  capital requirements of the company, with an eye to increasing its Tier I capital base.

The firm made its public market debut back in February, listing flat at the issue price of ₹129 on the BSE and the NSE.

Important to mention that NBFCs routinely undertake the NCD route to raise capital to meet their capital requirements. For context, Aye Finance is in the business of processing and providing business loans to MSMEs across India. 

The company offers small-ticket hypothecation loans with an average ticket size of ₹1.5 Lakh and mortgage-based loans with an average ticket size of ₹5 Lakh for businesses. Aye Finance claimed to have ₹7,044 Cr in AUM at the end of FY26. 

On the financial front, the NBFC’s net profit for Q4 FY26 surged 111% YoY to ₹85.9 Cr while its operating revenue increased 29% YoY to ₹528.4 Cr. 

For the full fiscal year FY26, the NBFC’s PAT increased 13% to ₹193.6 Cr from ₹171.3 Cr, while its operating revenue for the fiscal jumped 24% YoY to ₹1,814.7 Cr. 

Shares of Aye Finance ended today’s trading session 4.67% lower at ₹140 on the BSE.

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