Aye Finance IPO: The initial public offering (IPO) of NBFC Aye Finance has drawn cautious attention from the market, with grey market trends and early subscription data pointing to a muted debut.
The Alphabet-backed NBFC opened its IPO for public subscription on February 9 and the issue will close on February 11. The company has fixed the price band at ₹122 to ₹129 per share.
Aye Finance IPO GMP
The grey market premium for the Aye Finance IPO remained flat, signalling limited listing enthusiasm. As of February 10, Aye Finance IPO shares were trading at a GMP of ₹0, indicating a likely listing price of around ₹129, in line with the upper end of the issue price.
Aye Finance IPO Subscription
The IPO witnessed slow demand and was subscribed just 0.14 times by 11:00 am on Day 2. The retail investors’ portion was subscribed 0.36x, while the non-institutional investors segment saw just 0.01x bidding. The Qualified Institutional Buyers portion was subscribed 0.14x.
The issue received bids for 61.74 lakh shares against a total offer size of 4.25 crore shares.
Aye Finance: Should you subscribe?
As per SBI Securities, Aye Finance operates as a non-banking financial company focused on lending to underserved micro-scale businesses in India. The brokerage noted that the company is shifting towards an asset-backed lending model by increasing mortgage loans, which are larger and have longer tenures. This transition is expected to gradually ease credit costs, which remain elevated at 7% on an annualised basis for 1HFY26. SBI Securities also highlighted that profits declined nearly 40% year-on-year in 1HFY26 due to higher impairment costs, pressure on net interest margins, and rising operating expenses.
“At the upper price band of ₹129, the issue is valued at Adj. P/BV of 2.0x on post-issue capital. We would like to monitor the progress of reduction in credit cost with the company’s mortgage-heavy loan mix strategy. Hence, we recommend investors to AVOID the issue and track the company’s performance post listing,” said the brokerage.
Master Capital Services, meanwhile, highlighted the company’s strategic positioning within the MSME lending ecosystem and its focus on small-ticket secured and semi-secured loans catering to underserved borrowers.
“With its focus on small-ticket, secured, and semi-secured business loans, the company caters to underserved micro enterprises that remain largely outside the formal credit ecosystem. Investors may consider the IPO as a potential long-term investment opportunity,” said Master Capital Services.
Aye Finance IPO Details
Aye Finance aims to raise ₹1,010 crore through the IPO, comprising a fresh issue of 5.50 crore shares worth ₹710 crore and an offer for sale of 2.33 crore shares valued at ₹300 crore. Ahead of the issue, the company raised ₹454.5 crore from anchor investors on February 6.
Among key shareholders, Elevation Capital holds a 16.03% stake, followed by LGT Capital at 13.99%, Alphabet via CapitalG at 13.14%, and Alpha Wave India with 11.1%. British International Investment and A91 Emerging Fund each hold stakes of over 9%.
The issue has a lot size of 116 shares, translating into a minimum retail investment of ₹14,964. The allotment is likely on February 12, 2026, while listing is expected on February 16, 2026, on both the BSE and NSE.
The firm stated that the proceeds from the latest offering will be used to meet upcoming capital requirements resulting from business growth and asset development.
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management serve as the lead managers, while Kfin Technologies Ltd. acts as the registrar for the offering.
About Aye Finance
Incorporated in 1993, Aye Finance Limited provides secured and unsecured working capital loans to micro-scale MSMEs across manufacturing, trading, services, and allied agriculture sectors. As per the RHP, its listed peers include SBFC Finance Ltd with a P/E of 27.32 and Five-Star Business Finance Ltd with a P/E of 12.07.
For FY25, Aye Finance reported a profit of ₹175.3 crore, marginally higher than ₹171.7 crore in the previous year, while net interest income surged 37.9% to ₹858 crore. As of September 30, 2025, the company operated across 18 states and three union territories, serving around 5.9 lakh active customers with assets under management of ₹6,027.6 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
