Synopsis: MSME-focused NBFC Aye Finance Limited launches a ₹1,010 crore IPO combining fresh issue and OFS, highlighting strong growth and institutional backing, while carrying leverage and credit risks typical of small-business lending.
Aye Finance Limited is launching its Initial Public Offering (IPO) to raise funds through both a fresh issue and an offer for sale. The IPO is a book-built issue worth Rs. 1,010 crore, comprising a fresh issue of 5.50 crore shares totaling Rs. 710 crore and an offer for sale of 2.33 crore shares amounting to Rs. 300 crore.
The IPO opens for subscription on February 09, 2026, and closes on February 11, 2026. The shares will be listed on NSE and BSE on Monday, February 16, 2026. Here’s everything you need to know.
GMP of Aye Finance Limited IPO
As of February 4th, 2025, the shares of Aye Finance Limited in the grey market were trading at a X percent premium. The shares in the Grey Market traded at Rs. X. This gives it a premium of Rs. X per share over the cap price of Rs. 129.
Overview of Aye Finance Limited
Aye Finance Limited was incorporated in 1993 and is a non-banking financial company (NBFC) focused on providing secured and unsecured loans to micro and small businesses across India. The company primarily caters to micro-scale MSMEs, offering working capital solutions and business expansion loans.
The company’s product portfolio includes mortgage loans, ‘Saral’ property loans, and secured and unsecured hypothecation loans backed by business assets or property. Aye Finance serves customers across manufacturing, trading, services, and allied agriculture sectors.
As of recent reporting, the company supports 586,825 active customers across 18 states and three union territories, managing a significant asset base. The organization has steadily expanded its workforce, employing over 10,000 full-time employees as of September 30, 2025. With a strong presence in underbanked segments, Aye Finance plays a key role in enabling credit access for India’s small business ecosystem.
Aye Finance Limited does not have an identifiable promoter. The company follows a professionally managed ownership structure. Institutional investors hold significant equity stakes. Governance depends on board oversight and investor representation.
Aye Finance Limited Selling Shareholders
The Offer for Sale includes equity shares by several institutional investors. Alpha Wave India I LP will offload shares worth up to Rs. 30 crore. MAJ Invest Financial Inclusion Fund II K/S will sell shares aggregating Rs. 139.76 crore. CapitalG LP will divest shares worth up to Rs. 82.5 crore.
Additionally, LGT Capital Invest Mauritius PCC will sell shares totaling Rs. 30 crore. Vikram Jetley will offload shares aggregating Rs. 17.74 crore. These shares form part of the IPO and provide a partial exit to existing investors.
Lead Managers of Aye Finance Limited IPO
Axis Capital Limited, IIFL Capital Services Limited, Nuvama Wealth Management Limited, and JM Financial are the book-running lead managers for this IPO. KFin Technologies Limited will act as the registrar to the offer.
Objectives of the IPO Offer
The company will use fresh proceeds for business growth. It plans to strengthen its capital base. The company aims to support future lending expansion. Funds may improve operational capacity and technology. The company will allocate the remaining funds for corporate purposes.
Financial Analysis of Aye Finance Limited
Coming into financial highlights, Aye Finance Limited’s total revenue from operations has increased from Rs. 948.69 crore in FY24 to Rs. 1,325.96 crore in FY25, which represents a growth of 39.77 percent. The net profit has also increased by 2.08 percent from Rs. 171.68 crore in FY24 to Rs. 175.25 crore in FY25. In the six-months of FY25, Aye Finance Limited has reported a revenue from operations of Rs. 733.83 crore and a net profit of Rs. 64.60 crore.
In terms of return ratios, the company’s ROE and RoNW stand at 7.63 percent and 3.82 percent, respectively. Aye Finance Limited has an earnings per share (EPS) of Rs. 9.14, and its debt-to-equity ratio is 3.02x.
Aye Finance Limited Vs Peers
Aye Finance Limited reported revenue from operations of Rs. 1459.73 crore in FY25. The company posted an EPS of Rs. 9.51 and a Return on Net Worth of 12.12 percent.
In comparison, SBFC Finance Limited reported revenue of Rs. 1,306.16 crore with an EPS of Rs. 3.21 and RoNW of 11.57 percent. Five-Star Business Finance Limited posted a much higher revenue of Rs. 2,847.84 crore. It delivered a strong EPS of Rs. 36.61 and RoNW of 18.65 percent.
On the balance sheet side, Aye Finance reported a NAV of Rs. 90 per share. SBFC Finance recorded a NAV of Rs. 29.61 per share. Five-Star Business Finance showed a significantly higher NAV of about Rs. 215.22 per share.
Strengths of Aye Finance Limited
- The company maintains a strong presence in underserved MSME lending markets nationwide.
- Technology-driven underwriting improves credit assessment and operational efficiency significantly.
- Institutional investor backing strengthens governance and funding access capabilities.
- Diversified geographic footprint reduces concentration risk across regional markets.
- Experienced management team executes scalable lending and recovery strategies consistently.
Weaknesses of Aye Finance Limited
- High leverage increases sensitivity to funding cost fluctuations during tightening cycles.
- Exposure to micro enterprises raises vulnerability to economic and credit shocks.
- Rising operating expenses may pressure profitability during aggressive expansion phases.
- Asset quality risks remain elevated in unsecured small business lending segments.
- Dependence on external borrowings exposes liquidity risks during market stress periods.
Conclusion
Aye Finance Limited’s IPO offers exposure to India’s MSME credit growth story. The company combines financial inclusion with a scalable lending infrastructure. Investors should balance growth potential against credit and leverage risks. Careful review of financial metrics and sector trends remains essential.
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