Aye Finance IPO: The initial public offering (IPO) of Aye Finance, which opened for bidding on February 9, was booked 16% by the end of the second day of bidding. The mainboard IPO will close for subscription on Wednesday, February 11.
Founded in 1993, Aye Finance Limited offers both secured and unsecured working capital loans to micro-scale MSMEs operating in the manufacturing, trading, services, and allied agriculture segments. According to its RHP, its listed peers include SBFC Finance Ltd, which trades at a P/E of 27.32, and Five-Star Business Finance Ltd, with a P/E of 12.07.
In FY25, Aye Finance posted a net profit of ₹175.3 crore, slightly up from ₹171.7 crore in the preceding year, while its net interest income jumped 37.9% to ₹858 crore. As of September 30, 2025, the company had a presence in 18 states and three union territories, catering to approximately 5.9 lakh active customers and managing assets worth ₹6,027.6 crore.
Aye Finance IPO subscription status
As of 3:00 pm on February 11, the Aye Finance IPO has so far been subscribed over 90% so far on the last day of bidding.
The retail investor segment is subscribed 0.70 times, while the non-institutional investors’ category garnered a mere 0.04 times subscription. The qualified institutional buyers’ (QIB) portion was subscribed 1.39 times.
In total, the issue attracted bids for 4.08 crore shares compared to the total offer size of 4.55 crore shares.
Aye Finance IPO Review
Choice Equity Broking, while giving a ‘subscribe for long-term’ rating to the Aye Finance IPO, said that at the upper price band, the issue is priced at a post-issue P/BV of 1.3x, below the peer average. The discount appropriately reflects the company’s elevated GNPAs and credit costs, offering a risk-adjusted entry point for long-term investors.
“On the positive side, the Company has demonstrated strong growth in its top line, with interest income rising 47.9% and AUM increasing 47.4% between FY22 and FY25. While the declining ROE and ROA highlight operational pressures amid industry stress, the recovering NBFC sector and potential tailwinds support a favourable medium- to long-term growth outlook. Considering these near-term operational challenges alongside the growth potential, we assign a “Subscribe For Long Term” rating for this issue,” the firm said.
Meanwhile, Swastika Investmart has given a ‘neutral’ rating to the Aye Finance IPO, saying that fundamentals appear solid, with the company showing consistent revenue and profit growth.
“Company implying a P/E multiple near ~14x based on FY25 earnings is reasonably priced compared with some listed NBFC peers. Overall, the IPO is suitable for long-term investors with a belief in MSME lending growth and moderate NBFC credit risk appetite,” it said.
Aye Finance GMP today
The grey market premium (GMP) for the Aye Finance IPO remains tepid. As of February 11, the shares were quoting at a GMP of ₹0, suggesting a potential listing price of about ₹129, which matches the upper end of the issue price range.
Aye Finance IPO details
Aye Finance plans to mobilise ₹1,010 crore through its IPO, which includes a fresh issue of 5.50 crore shares, aggregating ₹710 crore, and an offer for sale of 2.33 crore shares worth ₹300 crore. Prior to the launch, the company secured ₹454.5 crore from anchor investors on February 6.
In terms of shareholding, Elevation Capital owns a 16.03% stake, LGT Capital holds 13.99%, Alphabet through CapitalG has 13.14%, and Alpha Wave India owns 11.1%. British International Investment and A91 Emerging Fund each have stakes exceeding 9%.
Investors can apply for the IPO in a lot size of 116 shares, requiring a minimum retail investment of ₹14,964. The basis of allotment is expected to be finalised on February 12, 2026, with the company likely to list on February 16 on both the BSE and NSE.
According to the company, the funds raised will be utilised to support future capital needs driven by business expansion and asset growth.
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management are the book-running lead managers to the issue, while Kfin Technologies Ltd. is the registrar.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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