Aye Finance Limited has announced a postal ballot notice seeking member approval for amendments to its Employee Stock Option Plans and ratification of extending benefits to its subsidiary's employees. The remote e-voting period will commence on May 1, 2026, at 9:00 A.M. IST and conclude on May 30, 2026, at 5:00 P.M. IST. The company has engaged Central Depository Services (India) Limited to provide the e-voting facility to all its members.

The postal ballot seeks approval for three special resolutions. The first resolution pertains to the amendment and ratification of the Aye Finance Employee Stock Option Plan 2020 (ESOP 2020), while the second resolution covers the amendment and ratification of the Aye Finance Employee Stock Option Plan 2024 (ESOP 2024). The third resolution seeks ratification for extending the benefits of ESOP 2024 to eligible employees and directors of Foundation for Advancement of Micro Enterprises, the company's wholly-owned subsidiary.

Key Features of the ESOP Plans

The proposed amendments include revisions to the exercise price mechanism for both ESOP 2020 and ESOP 2024. Under the new provisions, the exercise price per option will be determined by the committee, subject to a maximum discount of up to 10% on the market price of the shares on the grant date. However, the exercise price will not be less than the face value of ₹2 per share. The market price is defined as the latest available closing price on the recognized stock exchange where the company's shares are listed on the date immediately prior to the relevant date.

Implementation and Dilution Details

ESOP 2020 is implemented through the trust route, wherein the trust can acquire shares either through secondary acquisition from the market or by fresh allotment from the company. The maximum number of shares the trust can acquire from the company by way of fresh allotment shall not exceed 30,90,488 shares. In contrast, ESOP 2024 is implemented through the direct route, with the company allotting fresh shares to option grantees upon valid exercise of options.

On a consolidated basis, the maximum potential dilution under both plans is approximately 3.39% of the issued equity share capital of the company on a fully diluted basis as of the notice date. The company also has ESOP 2016, which is implemented through the trust route using existing listed equity shares held by the trust, and does not contemplate any fresh issue of shares.

Voting Process and Scrutiny

The cut-off date for determining member eligibility is April 24, 2026. Members whose names appear on the Register of Members or List of Beneficial Owners as on this date and have registered their email addresses with the company or depositories are entitled to vote. The company has appointed CS Jatin Singal as the scrutinizer to conduct the postal ballot through remote e-voting in a fair and transparent manner.

The voting results along with the scrutinizer's report will be announced on or before June 2, 2026, and will be uploaded on the company's website and the CDSL website. The resolutions, if passed by the requisite majority, shall be deemed to have been passed on the last date of remote e-voting, which is May 30, 2026.

Source: None/Company/INE501X01029/2ca900b970e44623.pdf

Aye Finance has announced comprehensive growth and operational targets for the coming years, outlining a strategic roadmap focused on portfolio diversification and improved financial metrics. The financial services company has set ambitious objectives across multiple business parameters to enhance its market position and operational efficiency.

Portfolio Expansion Strategy

The company plans to significantly expand its mortgage loan segment, targeting 30%-35% of its total portfolio within the next 2-3 years. This strategic shift represents a major diversification initiative as Aye Finance aims to balance its lending portfolio composition.

Financial Growth Targets for FY27

Aye Finance has established robust financial targets for FY27, demonstrating confidence in its business model and market opportunities. The company expects to achieve substantial growth while maintaining healthy profitability metrics.

Operational Efficiency Improvements

The company is implementing measures to enhance operational efficiency and reduce costs. Aye Finance aims to cut its operating expense ratio to 8.25%-8.75% in FY27, representing a significant improvement from 9.6% in FY26. This reduction demonstrates the company's commitment to streamlining operations and improving cost management.

Borrowing Cost Optimization

Aye Finance expects borrowing costs to decrease by 25-35 basis points in FY27 versus FY26. This anticipated reduction is attributed to strategic debt replacement initiatives and the possibility of a rating review, which could further improve the company's borrowing profile and reduce financing costs.

These strategic initiatives position Aye Finance for sustained growth while maintaining focus on profitability and operational excellence across its lending portfolio.