Aye Finance revises NCD issue to ₹220 crore in 2026

What changed in the latest NCD proposal

Aye Finance has revised the proposed size of its Non-Convertible Debentures (NCD) issuance to ₹220 crore through private placement. The updated proposal includes a green shoe option of up to ₹20 crore, which allows the company to retain oversubscription if demand is higher than the base offer. The company said the debentures would be rated, senior, listed, secured, transferable, and redeemable. The revision was communicated to both BSE Limited and the National Stock Exchange of India Limited. The disclosure sets the stage for an internal approval process before any issuance is finalised.

WALCO meeting scheduled for July 23, 2026

Aye Finance’s Working Committee of the Asset and Liabilities Committee (WALCO) is scheduled to meet on Thursday, July 23, 2026. The committee is expected to consider and approve the revised private placement proposal. The announcement is, at this stage, about a proposed meeting and not a confirmation of final issuance. The final terms, timing, and allotment details, if approved, would typically follow after the committee’s decision. The company’s disclosure framework indicates that the next key update will be the outcome of the July 23 meeting.

Key features of the debentures

The company has described the proposed NCDs as rated and secured instruments, with seniority and listing intended as part of the structure. They are also proposed to be transferable and redeemable. These features are consistent with debt market instruments used by NBFCs to mobilise longer-term funds. While the disclosures describe the nature of the debentures, they do not provide the specific coupon, tenure, or redemption schedule for this revised ₹220 crore proposal. Aye Finance also did not disclose detailed end-use plans in the corrigendum, stating only that funds would contribute to the company’s capital structure.

Issue size and green shoe: what the numbers indicate

The revised proposal lists a base issue size of up to ₹220 crore. Alongside it, the green shoe option is up to ₹20 crore, enabling a higher overall mobilisation if there is excess demand. Such a structure can give issuers flexibility to raise incremental capital without launching a separate issue. However, exercising a green shoe depends on subscription levels and the issuer’s final decision within approved limits. The company’s disclosures emphasise that the approval process is still pending and will be considered by WALCO.

How this fits into a larger fundraising framework

Separate from the revised ₹220 crore proposal, Aye Finance’s Board of Directors is scheduled to meet on July 22, 2026. The agenda includes reviewing the company’s first-quarter financial results and considering a broader NCD fundraising programme of up to ₹4,000 crore, proposed to be raised in tranches via private placement. The company’s disclosures also note that a raw alert had referenced a smaller figure, but the exchange disclosures outline a materially larger fundraising limit of up to ₹4,000 crore. In practice, a large programme limit can act as an umbrella under which multiple issuances may be executed over time, subject to internal approvals and market conditions.

Recent operating snapshot referenced in disclosures

The company cited strong first-quarter operational momentum, with AUM growth and asset quality improvement. It reported AUM growth of 28% year-on-year to ₹7,329 crore and gross non-performing assets (GNPAs) improving to 4.57%. The disclosures also referenced a rating upgrade to ‘IND A+’ by India Ratings. These datapoints are relevant because debt market access and pricing can be influenced by scale, asset quality indicators, and rating actions. The board meeting on July 22 is expected to cover the Q1 unaudited results alongside the fundraising proposal.

Longer-term growth plan: AUM target over five years

Aye Finance also released an investor presentation outlining a longer-term target of expanding AUM to about ₹24,000 crore within five years. The presentation frames this as a step up from an AUM base of ₹7,044 crore in FY26. While this target is not tied to a specific funding instrument in the disclosure, it provides context on why the company may seek incremental capital through debt markets. AUM expansion for an NBFC typically requires a steady pipeline of liabilities that match tenor and cost objectives, especially when lending to MSMEs.

Prior NCD activity: June 2026 allotment to FMO

In June 2026, Aye Finance disclosed a completed private placement allotment of NCDs aggregating ₹140 crore to Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO). The Securities Allotment Committee of the Board approved the allotment on June 25, 2026 through a resolution by circulation. The company allotted 14,000 NCDs with a face value of ₹1,00,000 each, aggregating to a nominal value of ₹140 crore. The debentures were described as senior, secured, rated, listed, redeemable, and transferable. The intimation regarding this allotment was submitted to BSE and NSE on June 26, 2026.

Market impact and what to track next

The immediate market relevance is procedural: investors and debt market participants will watch the July 23 WALCO meeting outcome for confirmation of the revised ₹220 crore issuance and any final terms released afterward. In parallel, the July 22 board meeting is expected to address the first-quarter results and the proposed NCD programme limit of up to ₹4,000 crore in tranches. The combination of operating momentum, a cited rating upgrade to ‘IND A+’, and repeat use of privately placed NCDs provides context for the company’s capital planning. The next concrete datapoints will be committee and board outcomes, followed by any detailed term sheets or allotment disclosures if issuances proceed.

Conclusion

Aye Finance has revised its privately placed NCD proposal to ₹220 crore, including a ₹20 crore green shoe option, with WALCO scheduled to consider the plan on July 23, 2026. Separately, the board is set to meet on July 22, 2026 to review Q1 results and consider a larger NCD fundraising programme of up to ₹4,000 crore in tranches. The next updates are expected after these meetings, when the company may disclose final terms and any successful allotments.