Aye Finance is launching a book-built IPO with a total issue size of ₹1,010.00 crore. The issue includes a fresh issue of approximately 5.50 crore equity shares, raising ₹710.00 crore, along with an offer for sale (OFS) of 2.33 crore shares worth ₹300.00 crore. The IPO subscription window opens on February 9, 2026, and closes on February 11, 2026.
The basis of allotment is likely to be finalised on February 12, 2026. Shares are expected to list on both BSE and NSE on February 16, 2026. The price band for the IPO has been fixed at ₹122 to ₹129 per share. Each application must be made in a lot size of 116 shares. Retail investors need to invest a minimum of ₹14,964, calculated at the upper end of the price band.
For non-institutional investors, the minimum application differs by category. The small NII (sNII) category requires 14 lots or 1,624 shares, translating to an investment of ₹2,09,496. The big NII (bNII) category requires 67 lots or 7,772 shares, with a total investment of ₹10,02,588.
Axis Capital Limited, is acting as the book running lead manager, while Kfin Technologies Limited has been appointed as the registrar.
(Source: RHP)
Company Overview
Incorporated on August 12, 1993, Aye Finance Limited is a Gurugram-based non-banking financial company (NBFC) focused on providing credit solutions to micro, small, and medium enterprises (MSMEs) across India. The company caters to borrowers who typically have limited access to formal credit, offering various loan products including:
- Mortgage Loans
- ‘Saral’ Property Loans
- Secured Hypothecation Loans
- Unsecured Hypothecation Loans
As of September 30, 2025, Aye Finance had around 5.86 lakh active unique customers across 18 states and three union territories, with assets under management (AUM) of ₹6,027.6 crore.
Aye Finance operates through a technology-enabled lending platform that combines on-ground client acquisition with data-driven credit assessment. Its product suite addresses working capital needs, business expansion financing, and asset purchase requirements for underserved micro enterprises.
(Source: RHP)
Industry Context
- MSME Credit Gap: India has a massive underserved MSME market with a substantial unmet credit demand, particularly in the micro-segment.
- Digital Transformation: Use of alternative data and AI is enabling NBFCs to underwrite “thin-file” customers who were previously excluded from formal banking.
- Regulatory Support: Government initiatives like Udyam registration and credit guarantee schemes are driving the formalisation of micro-enterprises.
- Financial Inclusion: Increasing literacy and smartphone penetration in rural areas are expanding the addressable market for formal lenders.
(Source: RHP)
Business Strengths
- Leading Lender in Micro-MSME: Deep understanding of a niche segment that is largely underserved by traditional banks.
- Proprietary Underwriting: Unique “business cluster” based methodology that assesses cash flows and margins without relying solely on formal documents.
- Granular Portfolio: Small Average Ticket Size (ATS) of ~₹0.15 million helps mitigate concentration risk and ensures a diversified loan book.
- Robust Collections: Multi-tiered collection mechanism including tele-calling, field teams, and legal recovery to manage repayment behavior.
- Strong Backing: Supported by marquee global investors including Alphabet (CapitalG), LGT Capital, and British International Investment.
(Source: RHP)
Financial Performance
Aye Finance Limited – (Restated Consolidated) (₹ in crore)
| Particulars | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 7,116.01 | 6,338.63 | 4,869.59 | 3,126.00 |
| Total Income | 863.02 | 1,504.99 | 1,071.75 | 643.34 |
| Profit After Tax | 64.60 | 175.25 | 171.68 | 39.87 |
| Net Worth | 1,727.37 | 1,658.87 | 1,232.65 | 754.49 |
| Reserves and Surplus | 1,689.58 | 1,621.08 | 1,192.72 | 724.04 |
| Total Borrowings | 5,218.50 | 4,526.33 | 3,498.99 | 2,296.16 |
(Source: RHP)
Key Ratios & Metrics (as of March 31, 2025)
| KPI | Sep 30, 2025 |
|---|---|
| ROE | 7.63% |
| Debt/Equity | 3.02 |
| RoNW | 3.82% |
| Price to Book Value | 1.45 |
(Source: RHP)
Market Outlook & GMP Trends
The Aye Finance IPO is seeing early traction in the unlisted market. As of February 5, 2026, the latest GMP stands at ₹5 (1.06 PM), suggesting a potential listing price of around ₹132 (at the upper price band of ₹129). This implies a modest expected upside of approximately 3.88%.
While the GMP is currently lower than some high-growth peers, the company’s strong AUM growth and specialised focus on the MSME sector are expected to draw interest from long-term investors once subscription opens.
(Source: RHP)
Aye Finance IPO Details
| IPO Detail | Information |
|---|---|
| IPO Date | 9 to 11 Feb, 2026 |
| Allotment Date | Thu, Feb 12, 2026 |
| Listing Date | Mon, Feb 16, 2026 |
| Face Value | ₹2 per share |
| Price Band | ₹122 to ₹129 |
| Lot Size | 116 shares |
| Min Investment | ₹14,964 |
| Sale Type | Fresh issue and OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
(Source: RHP)
Conclusion
Aye Finance presents a compelling case for investors seeking exposure to the high-growth micro-lending space. Its “phygital” model and cluster-based underwriting have allowed it to scale rapidly while maintaining a granular portfolio.
However, investors should note the increasing Gross NPA (4.21% in FY25) and the sensitivity of its borrower base to economic shocks. The IPO may be suitable for investors with a medium-to-long-term horizon who are comfortable with the inherent credit risks of the NBFC sector.
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