{"id":6312,"date":"2026-02-06T12:19:28","date_gmt":"2026-02-06T12:19:28","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6312"},"modified":"2026-02-06T12:20:36","modified_gmt":"2026-02-06T12:20:36","slug":"aye-finance-ipo-review-2026","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/aye-finance-ipo-review-2026\/","title":{"rendered":"Aye Finance IPO Review: Strengths, Risks & What the Numbers Reveal"},"content":{"rendered":"

Aye Finance is launching a book-built IPO with a total issue size of \u20b91,010.00 crore. The issue includes a fresh issue of approximately 5.50 crore equity shares, raising \u20b9710.00 crore, along with an offer for sale (OFS) of 2.33 crore shares worth \u20b9300.00 crore. The IPO subscription window opens on February 9, 2026, and closes on February 11, 2026.<\/span><\/p>\n

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 \u20b9122 to \u20b9129 per share. Each application must be made in a lot size of 116 shares. Retail investors need to invest a minimum of \u20b914,964, calculated at the upper end of the price band.<\/span><\/p>\n

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 \u20b92,09,496. The big NII (bNII) category requires 67 lots or 7,772 shares, with a total investment of \u20b910,02,588.<\/span><\/p>\n

Axis Capital Limited, is acting as the book running lead manager, while Kfin Technologies Limited has been appointed as the registrar.<\/span><\/p>\n

(<\/span><\/i>Source:<\/i><\/b> RHP<\/span><\/i><\/a>)<\/span><\/i><\/span><\/p>\n

Company Overview<\/b><\/h2>\n

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:<\/span><\/p>\n

    \n
  • Mortgage Loans<\/span><\/li>\n
  • \u2018Saral\u2019 Property Loans<\/span><\/li>\n
  • Secured Hypothecation Loans<\/span><\/li>\n
  • Unsecured Hypothecation Loans<\/span><\/li>\n<\/ul>\n

    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 \u20b96,027.6 crore.<\/span><\/p>\n

    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.<\/span><\/p>\n

    (<\/span><\/i>Source: <\/i><\/b>RHP)<\/span><\/i><\/span><\/p>\n

    Industry Context<\/b><\/h2>\n
      \n
    • MSME Credit Gap:<\/b> India has a massive underserved MSME market with a substantial unmet credit demand, particularly in the micro-segment.<\/span><\/li>\n
    • Digital Transformation:<\/b> Use of alternative data and AI is enabling NBFCs to underwrite “thin-file” customers who were previously excluded from formal banking.<\/span><\/li>\n
    • Regulatory Support:<\/b> Government initiatives like Udyam registration and credit guarantee schemes are driving the formalisation of micro-enterprises.<\/span><\/li>\n
    • Financial Inclusion:<\/b> Increasing literacy and smartphone penetration in rural areas are expanding the addressable market for formal lenders.<\/span><\/li>\n<\/ul>\n

      (<\/span><\/i>Source: <\/i><\/b>RHP)<\/span><\/i><\/span><\/p>\n

      Business Strengths<\/b><\/h2>\n
        \n
      • Leading Lender in Micro-MSME:<\/b> Deep understanding of a niche segment that is largely underserved by traditional banks.<\/span><\/li>\n
      • Proprietary Underwriting:<\/b> Unique “business cluster” based methodology that assesses cash flows and margins without relying solely on formal documents.<\/span><\/li>\n
      • Granular Portfolio:<\/b> Small Average Ticket Size (ATS) of ~\u20b90.15 million helps mitigate concentration risk and ensures a diversified loan book.<\/span><\/li>\n
      • Robust Collections:<\/b> Multi-tiered collection mechanism including tele-calling, field teams, and legal recovery to manage repayment behavior.<\/span><\/li>\n
      • Strong Backing:<\/b> Supported by marquee global investors including Alphabet (CapitalG), LGT Capital, and British International Investment.<\/span><\/li>\n<\/ul>\n

        (<\/span><\/i>Source: <\/i><\/b>RHP)<\/span><\/i><\/span><\/p>\n

        Financial Performance<\/b><\/h2>\n

        Aye Finance Limited \u2013 (Restated Consolidated) (\u20b9 in crore)<\/b><\/h3>\n
        \n\n\n\n\n\n\n\n\n\n\n
        Particulars<\/th>\n30 Sep 2025<\/th>\n31 Mar 2025<\/th>\n31 Mar 2024<\/th>\n31 Mar 2023<\/th>\n<\/tr>\n<\/thead>\n
        Assets<\/td>\n7,116.01<\/td>\n6,338.63<\/td>\n4,869.59<\/td>\n3,126.00<\/td>\n<\/tr>\n
        Total Income<\/td>\n863.02<\/td>\n1,504.99<\/td>\n1,071.75<\/td>\n643.34<\/td>\n<\/tr>\n
        Profit After Tax<\/td>\n64.60<\/td>\n175.25<\/td>\n171.68<\/td>\n39.87<\/td>\n<\/tr>\n
        Net Worth<\/td>\n1,727.37<\/td>\n1,658.87<\/td>\n1,232.65<\/td>\n754.49<\/td>\n<\/tr>\n
        Reserves and Surplus<\/td>\n1,689.58<\/td>\n1,621.08<\/td>\n1,192.72<\/td>\n724.04<\/td>\n<\/tr>\n
        Total Borrowings<\/td>\n5,218.50<\/td>\n4,526.33<\/td>\n3,498.99<\/td>\n2,296.16<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
        \u2190 Swipe horizontally to view full financial particulars \u2192<\/div>\n