Goldman Sachs doubles down on Aye Finance despite muted debut; BofA is acquiring stake in EIL in a bulk deal of Rs 100 crore

Goldman Sachs on Monday bought over 16.8 lakh shares of Aye Finance in a bulk deal worth Rs 22 crore. Earlier, during the February 6 anchor allotment, it acquired 53.48 lakh shares in the NBFC for Rs 69 crore. In a separate transaction, BofA Securities bought nearly 46 lakh shares of PSU major Engineers India Ltd (EIL) for around Rs 100 crore.

Aye Finance bulk deal

Goldman Sachs bought these shares through its Goldman Sachs Funds Goldman Sachs India Equity Portfolio.

Aye Finance made a lackluster market debut today, trading flat at its issue price of Rs 129 per share. The stock ended today at Rs 128.80, down 0.16% from its issue price.Established in 1993, Aye Finance is a Non-Banking Financial Company (NBFC) that provides secured and unsecured small business loans to micro-SMEs primarily for working capital needs. The company currently serves over 5.86 lakh active customers across 18 states and three Union Territories.

The issue was launched on February 9 and ended on February 11. The issue failed to generate enthusiasm among investors and was subscribed by 97%. The IPO received 4,42,21,288 equity bids against 4,55,32,785 equity shares offered. The retail quota was booked at 77%, while non-institutional investors subscribed to only 5% of their allocated shares. The response from Qualified Institutional Buyers (QIBs) was encouraging with a 1.50x subscription.

Also read: Morgan Stanley and Goldman Sachs choose multibagger Ather Energy via block deals; NIIF sells stake of Rs 233 cr

EIL bulk deal

EIL, a leading Indian public sector engineering consultancy and technology licensing company, had a buyer in BofA Securities Europe SA. The shares were bought at a price of Rs 217.06 each, which was an 8% premium over Friday’s closing price of Rs 201.67.

EIL shares closed the session today at Rs 230.51, gaining Rs 28.84 or 14.30% from its last close. The stock outperformed the market with a 41% return over one year. In the past three years, prices have increased by almost 200%.

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