aye finance has secured board approval to raise up to ₹4,000 crore through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. The capital raising initiative is intended to bolster the company's financial resources, with the issuance to be executed in one or more tranches over a period of one year following shareholder approval. This move is subject to the consent of shareholders at the ensuing Annual General Meeting, which is scheduled for September 1, 2026.

The Board of Directors approved the proposal during a meeting held on July 22, 2026. The decision aligns with the regulations outlined by the Securities and Exchange Board of India (SEBI) under the SEBI Listing Regulations and the relevant Master Circular. The funds will be mobilized via private placement, allowing the company to strategically time the issuances based on market conditions and requirements.

Key Details of the NCD Issuance

The specific terms for the debt instruments, including tenor, coupon rates, and security creation, will be determined by the Working Committee of the Board of Directors (WALCO) for each tranche. The table below outlines the broad parameters of the issuance as disclosed in the regulatory filing.

Shareholder Approval and AGM

The implementation of this fund-raising proposal is contingent upon approval from the shareholders. The 33rd Annual General Meeting (AGM) of Aye Finance Limited is slated to be held on Tuesday, September 1, 2026. The meeting will be conducted via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). The formal notice convening the AGM will be circulated to shareholders within the prescribed statutory timeline.

The board meeting, which commenced at 10:51 A.M. IST and concluded at 1:25 P.M. IST, also considered other routine matters. Gaurav Seth, Chief Financial Officer, signed the regulatory disclosure submitted to the exchanges.

Aye Finance has outlined its strategic vision and financial outlook, targeting an Assets Under Management (AUM) of approximately Rs 24,000 crore within five years. The non-banking financial company, focused on micro-scale MSMEs, reported an AUM of Rs 7,044 crore as of March 31, 2026, marking a 27% increase in FY26. The company provided guidance for AUM growth of 25–30% in FY27 and a compound annual growth rate (CAGR) of 28–33% over the next three years.

Financial Performance and Outlook

The company’s Return on Assets (RoA) stood at 3.08% in FY26, a period described as a difficult credit vintage due to an industry-wide over-lending cycle. Management stated that in a normal year, as credit costs normalise, the RoA could reach 5% or more. Through the cycle, the company expects an RoA of roughly 4–6%. Operating leverage is expected to improve, with the opex-to-assets ratio guided down from 9.6% in FY26 to 8.25–8.75% in FY27 and 7.0–7.5% over three years.

Key Metrics and Guidance

Aye Finance’s portfolio consists of 78% Hypothecation Loans and 22% Mortgage Loans. The company serves 6.5 lakh active customers through a network of 571 branches across 18 states and 3 union territories. The Capital to Risk-weighted Assets Ratio (CRAR) remains strong at 42%, entirely Tier I, with a debt-to-equity ratio of 2.06x.

Strategic Growth Drivers

The company’s growth strategy focuses on deepening reach in existing segments and widening product offerings, such as gold loans and affordable housing. Aye Finance emphasised its cluster-based underwriting method, which estimates cash flows without relying on formal books. Technology integration across the value chain, including proprietary models for underwriting and collections, supports its unit economics. The average cost of borrowings has reduced to 10.9% in FY26, aided by a recent credit rating upgrade to 'A+ stable' by India Ratings in June 2026.

Credit Quality and Risk Management

Credit costs were 4.76% in FY26 and are guided to 3.5–4.0% in FY27. The company noted that credit costs have remained range-bound, with elevated readings confined to periods of system-wide stress, such as Covid in FY22 and the industry over-lending cycle in FY25. Diversification across states, sectors, and 70+ business clusters has helped the portfolio navigate past shocks without disruption.