AYE Finance Limited has submitted its monitoring agency report to BSE Limited and National Stock Exchange of India Limited confirming no deviation in the utilization of proceeds raised through its Initial Public Offer for the quarter ended March 31, 2026. The filing was made pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The company raised Rs 7,100 million through a fresh issue via public issue during the period February 9-11, 2026. CRISIL Ratings Limited has been appointed as the monitoring agency for overseeing the utilization of these funds. The statement confirms that there has been no deviation in the objects or purposes for which the funds were raised, nor any deviation in the amount of funds actually utilized as against what was originally disclosed.

Key Details of IPO Proceeds Utilization

Utilization Status

The monitoring agency report indicates that Rs 5,022.42 million of net proceeds have been utilized towards augmenting the capital base to meet the company's future capital requirements arising out of growth of business and assets. The proceeds were utilized towards onward lending during the quarter ended March 31, 2026. The remaining unutilized amount of Rs 1,700 million has been parked in fixed deposits with various banks including DCB Bank, Federal Bank, and RBL Bank.

The unutilized proceeds are deployed across multiple fixed deposits with returns ranging from 6% to 7.40%. Additionally, Rs 377.58 million representing issue expenses remains in the public offer account maintained with HDFC Bank. The total unutilized amount including earnings stands at Rs 2,089.38 million as at March 31, 2026.

Compliance and Certification

The audit committee and statutory auditors M/s S S Kothari Mehta & Co, LLP have provided nil comments after reviewing the fund utilization. The monitoring agency confirmed that all utilization is as per the disclosures in the offer document, and there are no material deviations from expenditures disclosed in the offer document. The company clarified that deviation or variation could mean deviation in the objects or purposes for which funds were raised, deviation in the amount of funds actually utilized as against original disclosure, or change in terms of a contract referred to in the fund raising document.

The statement was signed by Vipul Sharma, Company Secretary, Compliance Officer & CCO, on behalf of Aye Finance Limited. The company operates as a Non-Banking Financial Company (NBFC) and is subject to regulations relating to capital adequacy requiring maintenance of minimum capital adequacy ratio of not less than 15% of aggregate risk weighted assets.

Aye Finance has updated its growth projections, setting more ambitious targets for its Assets Under Management expansion over the next three years. The financial services company has revised its earlier projections, demonstrating increased confidence in its market positioning and operational capabilities.

Revised Growth Strategy

The company now aims for 28% to 33% growth in Assets Under Management over the next three years, representing an upward revision from its previous target of 25-30% growth for FY27. This extended timeline approach suggests a more comprehensive strategic outlook for sustained expansion.

Maintained Profitability Focus

Despite the enhanced growth ambitions, Aye Finance continues to expect its Net Interest Margin to remain within the previously guided range of 14.25% to 14.75%. This consistency in margin expectations indicates the company's commitment to maintaining profitability standards while pursuing aggressive growth.

Strategic Implications

The revised projections reflect Aye Finance's enhanced confidence in its business model and market opportunities. By extending the timeline to three years while increasing the growth target range, the company appears to be taking a more strategic approach to expansion that balances ambitious growth with sustainable operations.

These updated targets provide stakeholders with a clearer picture of the company's medium-term strategic direction and expected financial trajectory in the competitive financial services landscape.