Aye Finance is launching a book-built IPO worth ₹1,010 crore. It includes a fresh issue of 5.50 crore shares (₹710 crore) and an offer for sale of 2.33 crore shares (₹300 crore).
The IPO will open for subscription on February 9, 2026, and close on February 11, 2026. The allotment is likely to be finalised on February 12, 2026, and the shares are expected to list on BSE and NSE on February 16, 2026.
The price band is fixed at ₹122 to ₹129 per share. The lot size is 116 shares, requiring a minimum retail investment of ₹14,964 (at the upper price). Axis Capital is the lead manager, and Kfin Technologies is the registrar.
Industry Outlook
- NBFC credit has grown at a strong pace, recording an estimated CAGR of around 13.2% during FY19–FY25. This highlights steady demand for NBFC-led lending across India.
- Growth was largely led by the retail segment, where NBFC retail credit is estimated to have grown at a ~16% CAGR during FY19–FY25. In comparison, NBFC non-retail credit grew at a relatively slower ~11.5% CAGR in the same period.
- Going ahead, the retail segment is expected to remain the key driver, with growth projected at 17%–19% during FY25–FY27. This continued focus on retail lending is likely to support overall NBFC credit expansion.
- NBFCs are steadily increasing their reach beyond major centres, especially in smaller districts. Their loan share in the next 100 districts rose from 16.11% in FY19 to 26.29% in FY25, and further to 27.08% in Q1 FY26.
- Growth is also visible in small-ticket lending, especially loans up to ₹5 lakh, where NBFC penetration is rising. In the top 20 districts, their share increased from 11.32% to 16.52% in FY25, and further to 17.05% in Q1 FY26.
- Business loan segments are emerging as the fastest-growing areas for NBFCs, driven by MSME credit needs. Within retail, secured business loans grew at a 54.8% CAGR, while unsecured business loans expanded at a 32.58% CAGR, reflecting strong demand and a large credit gap.
Aye Finance IPO Objectives
- The company will utilize the net proceeds from the fresh issue portion (approximately ₹710 crore) to augment its Tier-I capital base. This is intended to meet future capital requirements arising from the expected growth of its business and asset portfolio.
- A significant portion of the funds is earmarked to support the expansion of its loan book, specifically targeting credit-underserved micro-scale enterprises across India. As of September 2025, the company managed assets (AUM) totaling ₹6,027.6 crore.
- The remaining funds from the fresh issue will be used for general corporate needs, which include enhancing the brand name, improving operational infrastructure, and meeting day-to-day administrative expenses.
About Aye Finance Limited
Aye Finance Limited, incorporated in 1993, is an NBFC focused on providing secured and unsecured working capital loans to micro-scale MSMEs. The company supports small businesses across sectors such as manufacturing, trading, services, and allied agriculture, helping them meet day-to-day funding needs as well as business expansion requirements.
Its key products include Mortgage Loans, ‘Saral’ Property Loans, Secured Hypothecation Loans, and Unsecured Hypothecation Loans. Loans are typically backed by business assets or property, depending on the product type.
Aye Finance has a strong presence across India, serving 5,86,825 active customers across 18 states and three union territories, supported by a growing asset base. The company’s workforce has expanded steadily, with 10,459 full-time employees as of the six months ended September 30, 2025.
How To Check the Allotment Status of the Aye Finance IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Aye Finance IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Aye Finance IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Aye Finance IPO
Registered Office: M-5, Magnum House-I, Community Centre, Karampura, New Delhi, New Delhi, 110015
Phone: +91 124 484 4000
Email ID: secretarial@ayefin.com
Aye Finance IPO Reservation
| Investor Category | Shares Offered |
| QIB | Not less than 75% of the Net Offer |
| Retail | Not more than 10% of the Net Offer |
| NII | Not more than 15% of the Net Offer |
Aye Finance IPO Promoter Holding
Aye Finance is professionally managed and does not have an identifiable "Promoter" under SEBI (ICDR) Regulations and the Companies Act, 2013.
Key Performance Indicators for Aye Finance IPO
| KPI | FY25 |
| AUM Growth (YoY) | 23.99% |
| Retention Rate | 49.54% |
| Disbursement Growth (YoY) | 8.95% |
| Return on Equity (RoE) | 12.12% |
| Net Interest Margin (NIM) | 15.31% |
Aye Finance IPO Prospectus
Aye Finance IPO Registrar and Lead Managers
Aye Finance IPO Lead Managers
Axis Capital Ltd.
Registrar for Aye Finance IPO
Name: Kfin Technologies Ltd.
Phone: 04067162222, 04079611000
Email: ayefinance.ipo@kfintech.com
Financial Performance of Aye Finance Limited
| Metric (₹ in million) | FY23 | FY24 | FY25 |
| Total Interest Income | 5,664.85 | 9,486.86 | 13,259.64 |
| Total Income | 6,433.35 | 10,717.50 | 15,049.87 |
| Net Interest Income (NII) | 3,685.25 | 6,221.55 | 8,579.61 |
| Operating Expense | 2,940.59 | 3,797.82 | 5,195.25 |
| Profit After Tax (PAT) | 398.73 | 1,716.79 | 1,752.52 |
Aye Finance Limited Peer Details Comparison
| Company | Revenue From Operations FY25 (₹ million) | EPS FY25 (Basic) | P/E FY25 | Return on Net Worth FY25 (%) | Market Capitalisation (₹ billion) |
| Aye Finance (Company) | 14,597.32 | 9.51 | NA | 12.12 | NA |
| SBFC Finance Ltd | 13,061.57 | 3.21 | 27.32 | 11.57 | 93.47 |
| Five-Star Business Finance Ltd | 28,478.40 | 36.61 | 12.07 | 18.65 | 129.68 |
Strengths and Opportunities of Aye Finance IPO
- Aye Finance is positioned as a leading lender to micro-scale MSMEs, and is among the few peer MSME-focused NBFCs offering a full product line across secured and unsecured loans, helping it address a large unserved market (CRISIL).
- Its product mix is well-diversified, with AUM split across Hypothecation Secured (41.01%), Hypothecation Unsecured (37.97%), Mortgage Loans (19.28%), and Saral Property Loans (1.74%) as of September 30, 2025.
- The company maintains a granular lending model with an average ticket size (ATS) of around ₹0.18 million on disbursement, allowing it to scale in the small-ticket loan segment while managing risk through affordable monthly repayments.
- Aye Finance benefits from a large and underpenetrated opportunity, as India has 57.7 million MSMEs, of which 98% are micro enterprises, and MSMEs face an unmet credit demand estimated at ₹103 trillion (CRISIL).
- The MSME credit gap remains structurally large, with total credit demand estimated at ₹159 trillion in FY25, while only 27%–28% is met through formal financing, leaving a gap of around ₹117 trillion (CRISIL).
Risks and Threats of Aye Finance IPO
- Asset quality has weakened over time, with Gross NPA rising from 2.49% (FY23) to 4.21% (FY25) and further to 4.85% as of September 30, 2025, indicating rising borrower stress and higher credit risk.
- The risk is elevated because Aye largely lends to micro-scale MSMEs in Tier II/III/IV locations, where customers often have limited financial records, informal cash flows, and weak credit history, making underwriting inherently challenging.
- A significant portion of the book is exposed to first-time formal borrowers, with 141,311 fresh customers accounting for 37.17% of total advances as of September 30, 2025, which can increase default probability.
- Portfolio stress is sharper in the core hypothecation segment, where Stage 3 assets were ₹2,370.77 million and the Stage 3 ratio stood at 5.16% as of September 30, 2025 (up from 2.28% in FY23).
- Unsecured exposure is high and structurally riskier, with unsecured loans forming 37.97% of AUM (Sep 30, 2025) and having a higher GNPA of 5.70%, which increases loss risk in downturns.
