topsharebroker.com

Zerodha > Trade @ ₹ 20 (Free Delivery + Free Demat Account)

The Aye Finance IPO has become one of the most talked-about equity offerings in the Indian market this year. With its subscription window set to open in February 2026, retail and institutional investors are closely watching this listing candidate. In this guide, we break down the key details, business highlights, financials, and what the grey market is pricing before the official stock market debut.

Aye Finance IPO – Key Facts & Figures

The initial public offering (IPO) of Aye Finance Limited is scheduled to open for public subscription on Monday, 9 February 2026, and will remain open until Wednesday, 11 February 2026. The issue size of the IPO is around ₹1,010 crore, with a mix of fresh issuance and an offer for sale (OFS) by existing investors.

IPO Dates

  • Subscription Opens: 9 Feb 2026

  • Subscription Closes: 11 Feb 2026

  • Allotment Expected: ~12 Feb 2026

  • Listing Date (Tentative): ~16 Feb 2026

  • Price Band: ₹122 – ₹129 per share
  • Lot Size: 116 shares (i.e., minimum investment ~₹14,964 at the upper band)
  • Expected Listing: NSE and BSE platforms

At the top end of the price band, the company’s valuation is estimated to be around ₹3,184 crore.

Grey Market Premium (GMP) & Early Listing Sentiment

Before an IPO officially lists on stock exchanges, shares often trade in the informal grey market. This gives an early indication of market sentiment. According to current tracking, the Aye Finance IPO is showing a grey market premium (GMP) of around ₹5, which indicates investors expect the stock to list at approximately ₹134 per share, roughly 3.9% above the upper price band.

 

Note: The GMP is not regulated by SEBI or the exchanges and should be interpreted cautiously, as it’s based on unofficial trading.

What Does Aye Finance Do?

Aye Finance is a non-banking financial company (NBFC-ML) that specializes in lending to micro, small, and medium enterprises (MSMEs) across India.

Unlike larger banks, Aye Finance focuses on the “missing middle” — businesses that are often underserved due to not having the paperwork or scale required by traditional lenders. These include small manufacturers, traders, and service providers across urban and semi-urban regions.

Key product offerings include:

  • Working capital loans

  • Secured and unsecured term loans

  • Hypothecation loans backed by business assets

  • Mortgage loans for business expansion

The company’s strategy combines technology-driven underwriting and a broad physical branch network to reach thousands of small businesses.

Business Highlights & Financial Snapshot

According to the company’s latest regulatory filings:

  • Aye Finance served 586,825 active customers as of September 30, 2025.

  • Its Assets Under Management (AUM) stood at around ₹6,027.6 crore.

  • For the fiscal year ending March 2025, the company reported a net profit of ₹175.3 crore and saw its net interest income grow by nearly 38% year-on-year.

This trajectory reflects the growing demand for tailored credit products among India’s MSME sector, which continues to face a significant formal credit gap.

Promoters & Major Investors

Aye Finance does not have a single traditional promoter. Instead, it is backed by several global and domestic institutional investors, including:

  • Elevation Capital

  • LGT Capital

  • CapitalG (an affiliate of Alphabet)

  • Alpha Wave India

  • MAJ Invest Financial Inclusion Fund

These prominent investors reflect confidence in the company’s business model and growth potential.

Risks to Consider

As with any IPO, Aye Finance comes with its share of risks. Analysts have pointed out a rise in the company’s gross non-performing asset (NPA) ratio, which stood close to 4.8% by September 2025, up from around 2.5% in 2023.

Furthermore, a significant portion of its loan book consists of unsecured and small-ticket loans, which can be more sensitive to economic cycles and borrower defaults.

Potential investors should weigh these risk factors alongside growth prospects. Consulting with a financial advisor or broker can offer personalized insights.
External resource for IPO guidance: Check SEBI’s official IPO guidelines — https://www.sebi.gov.in

Should You Apply? Investor Considerations

Before applying for any IPO, including Aye Finance’s, investors should think about:

  • Long-term growth vs short-term gains

  • Financial health and NPA trends

  • Grey market indicators

  • Their own risk tolerance and investment horizon

Stay updated with official filings on the BSE or NSE websites and monitor allotment results after subscription closes.

Conclusion

The Aye Finance IPO 2026 presents a compelling opportunity for investors interested in the growing MSME financing sector in India. With a solid price band, a strong institutional base, and a sizeable target market, the issue has attracted early market interest. However, rising asset quality concerns and broader economic conditions remain key considerations.

Whether you’re a retail investor or a seasoned market participant, conducting thorough research and understanding both the upside and risks is essential before making investment decisions.

FAQ 

Q1: When will Aye Finance IPO subscription open?
The IPO opens on 9 February 2026 and closes on 11 February 2026.

Q2: What is the IPO price band?
The price band is set at ₹122 – ₹129 per share.

Q3: What does GMP indicate?
GMP (Grey Market Premium) is an unofficial price indicator suggesting expected listing price but isn’t guaranteed.

 

Disclaimer

This article is for educational and informational purposes only. It is not investment advice. Please consult a registered financial advisor before investing in IPOs.

Leave a Reply

Your email address will not be published. Required fields are marked *