Aye Finance IPO Overview
Aye Finance Limited is a Gurugram-based Non-Banking Financial Company (NBFC) focused on lending to micro, small and medium enterprises (MSMEs) across India — targeting underserved business segments that lack easy access to traditional bank credit. The company combines data analytics, cash-flow underwriting and technology-enabled credit assessment for scalable and risk-adjusted growth.
Aye Finance has fixed its IPO to raise approximately ₹1,010 crore through a book-built issue comprising both fresh capital and an offer for sale (OFS). The IPO opens for public subscription on 9 February 2026 and closes on 11 February 2026, with an expected listing on 16 February 2026 on both BSE & NSE.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | Book Built Offer – Mainboard |
| IPO Open Date | 9 February 2026 (Friday) |
| IPO Close Date | 11 February 2026 (Tuesday) |
| Allotment Date | 12 February 2026 (Expected) |
| Credit to Demat | 13 February 2026 (Expected) |
| Refund Initiation | 13 February 2026 (Expected) |
| Listing Date | 16 February 2026 (Tentative) |
| Price Band | ₹122 to ₹129 per share |
| Face Value | ₹2 per share |
| Lot Size | 116 shares |
| Min Investment (Retail) | ₹14,964 (116 shares @ upper band) |
| sNII Minimum | ₹2,09,496 (14 lots, 1,624 shares) |
| bNII Minimum | ₹10,02,588 (67 lots, 7,772 shares) |
| Issue Size | ~₹1,010 crore |
| Fresh Issue | ~₹710 crore |
| Offer for Sale (OFS) | ~₹300 crore |
| Total Shares Offered | 78,29,574 equity shares (approx.) |
| Listing | BSE & NSE |
Issue Break-up
| Category | Approx Allocation |
| Anchor Investors | ~35–40% |
| QIB (Qualified Institutional Buyers) | ~75% (incl. anchor component) |
| NII (Non-Institutional Investors) | ~15% |
| Retail Individual Investors | ~10% |
| Employee Reservation | As per RHP |
| Total | 100% |
The broad allocation follows SEBI’s standard structure for mainboard IPOs, with a large QIB portion to support institutional demand.
Selling Shareholders (OFS)
- A portion of the IPO (~₹300 crore worth) is Offer for Sale (OFS) by existing investors, including:
- Alpha Wave India I LP
- MAJ Invest Financial Inclusion Fund II
- CapitalG LP (Alphabet’s investment arm)
- LGT Capital Invest Mauritius
- Other early-stage backers.
This means some existing shareholders are partially exiting, while the company also raises fresh capital for growth.
Objects of the Issue (Fund Utilization)
Proceeds from the fresh issue (≈₹710 crore) are proposed to be used for:
- Augmenting the company’s capital base to support future loan growth and regulatory capital requirements.
- Strengthening the balance sheet to enable expansion of the loan portfolio.
- General corporate purposes, including technology enhancements and working capital.
This capital augmentation is critical for NBFCs like Aye Finance to ensure financial stability, maintain capital adequacy, and pursue sustainable growth across high-potential MSME segments.
Lead Managers & Registrar
- Book Running Lead Managers (BRLMs):
- Axis Capital Ltd
- IIFL Capital Services Ltd
- JM Financial Ltd
- Nuvama Wealth Management Ltd
- Registrar to the Issue:
- KFin Technologies Ltd
Promoters & Management
Founders / Key Leaders:
- Mr. Sanjay Sharma – Co-Founder & Chairman
- Mr. Anand Rao – Co-Founder & Director
Aye Finance’s leadership team brings decades of experience in banking, NBFC operations, MSME credit underwriting and technology-driven lending models. The company has evolved from early investor-backed growth to a full NBFC with a focus on financial inclusion.
COMPANY DETAILS
Incorporation & Background:
Aye Finance was originally incorporated in 1993 and is headquartered in Gurugram, Haryana. It is registered with the Reserve Bank of India (RBI) as an NBFC (middle layer).
Business Model & Operations:
- Provides secured and unsecured business loans to micro-small enterprises across manufacturing, trading, services and allied sectors.
- Uses a cluster-based underwriting approach combining analytics with on-ground insights to assess creditworthiness.
- Branch network across 18+ states and 3 Union Territories, serving ~6 lakh active MSME customers with an assets under management (AUM) of over ₹6,000 crore (as of Sept 2025).
Products / Services:
- Working capital loans
- Business expansion credit
- Secured loans backed by hypothecation of assets or property
- Tailored credit products for micro businesses
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY25 | ~1,460 | ~175 |
| FY24 | ~1,071 | ~172 |
| H1 FY26 | ~843 | ~34 (Q2)* |
H1 FY26 net profit saw moderation compared to H1 FY25, with operating income still strong. Investors should note quarterly fluctuations in NBFC performance during credit cycles.
Company Strengths
- Strong institutional backing: Credible investors (Alphabet’s CapitalG, Goldman Sachs, LGT, etc.).
- Large addressable MSME credit market: India’s MSME credit gap presents long-term growth opportunities.
- Cluster-based underwriting model: Enhances credit risk assessment beyond traditional metrics.
- Experienced management: Deep domain expertise in NBFC lending and risk analytics.
- Broad geographic footprint: Presence across many states increases diversification.
- Consistent revenue & AUM growth: Strong top-line momentum over recent years.
Key Risks & Challenges
- Asset quality risk: Gross NPAs can rise with economic stress or MSME defaults; Q2 FY26 GNPA ~4.85%.
- Credit cycle sensitivity: NBFC performance remains linked to broader economic conditions.
- Competition: Banks, fintech lenders and other NBFCs compete for the same MSME market.
- Interest rate risk: Higher rates could impact loan demand and repayments.
- Dependence on capital markets: Continued access to funding is essential for lending growth.
Disclaimer
This document is for educational and informational purposes only and does not constitute investment advice or recommendation. Investors are advised to read the Red Herring Prospectus (RHP), consult with certified financial advisors, and consider market risks before making investment decisions. Past performance is not indicative of future results and all investments are subject to market risk.
