Aye Finance IPO Date, Price, GMP, Review, Details
Aye Finance
Aye Finance IPO Details
IPO Open
09 Feb 2026
IPO Close
09 Feb 2026
Price Band
₹122 – ₹129
Issue Size
₹1,010Cr
Listing on
BSE, NSE
Min. Lot Size
116
Face value
₹2
GMP
-
Key Performance Indicators
Market Cap
₹3,183.52 Cr
P/E
14.11
EPS
₹9.14
ROE
7.83
RoNW
3.82%
Sector
Financing
Aye Finance IPO Timeline
The Aye Finance IPO listing date is expected to be January 16 2026, with allotment finalized on January 12 2026.
Introduction
Aye Finance Limited is a non-banking financial company focused on lending to micro and small enterprises across India. The company primarily serves businesses that are underserved by traditional banks, offering customised credit solutions to entrepreneurs operating in the informal and semi-formal economy.
The company operates in India’s fast-growing MSME lending space, which continues to benefit from rising credit demand, formalisation of businesses, and government-backed financial inclusion initiatives. With a strong on-ground presence and a data-driven underwriting approach, Aye Finance has built a scalable lending model focused on asset-backed and cash-flow-based loans.
Through this IPO, the company aims to strengthen its capital base, improve lending capacity, and support long-term business growth. For investors, this IPO provides exposure to India’s MSME credit growth story through a specialised NBFC with a focused operating model.
About Aye Finance
Aye Finance Limited was incorporated in 1993 under the name Doda Finance Private Limited. The company later rebranded to Aye Finance Private Limited in 2014 as it sharpened its focus on micro and small enterprise lending. It was converted into a public limited company in 2024. Over the years, the company has evolved into a specialised NBFC serving MSMEs across multiple Indian states, backed by institutional investors and long-term capital.
Business Model
Aye Finance operates as an NBFC providing secured and semi-secured loans to micro and small enterprises. The company follows a branch-led lending model supported by digital credit assessment, combining on-ground customer sourcing with centralised underwriting. Its core strength lies in cash-flow-based credit evaluation for informal businesses.
Brand and Market Positioning
The company is positioned as a trusted lender for underserved MSMEs that lack access to traditional bank credit. Aye Finance has built credibility through consistent loan disbursements, repeat customers, and disciplined risk management. Its focused segment approach allows strong brand recall among small business owners.
Products and Services
Business loans to micro enterprises
MSME working capital loans
Secured and semi-secured enterprise loans
Asset-backed loans
Loans to self-employed professionals
Flagship Offerings
The company’s flagship offering is its customised MSME business loan, designed for enterprises with limited formal documentation. The product stands out due to flexible ticket sizes, structured repayment schedules, and strong risk controls. Data-led underwriting combined with field verification creates a meaningful entry barrier.
Revenue Profile
Aye Finance generates revenue primarily from interest income on loans disbursed to MSMEs. The bulk of revenue comes from micro and small enterprise lending, with repeat borrowers contributing meaningfully to portfolio stability. Operations are largely domestic, focused on Indian markets.
Geographical Footprint
The company operates through a wide network of branch offices across multiple states in India. Its lending presence is concentrated in high MSME-density regions, enabling deeper penetration in local markets. North and West India form key operational regions.
Management and Promoters
Aye Finance does not have an identifiable promoter. The company is professionally managed by an experienced leadership team with backgrounds in finance, risk management, and MSME lending. Governance is overseen by a structured board with independent and investor-nominated directors. Senior management drives day-to-day operations.
Corporate Structure
The company has one subsidiary, FAME Foundation for Advancement of Micro Enterprises, which supports financial inclusion initiatives. There are no complex holding structures or overseas subsidiaries, keeping the corporate structure simple and transparent.
Target Customers
Aye Finance primarily serves micro and small business owners, including traders, manufacturers, and service providers. Customers are typically self-employed individuals operating in cash-driven or semi-formal sectors with limited access to bank finance.
How the Company Earns
The company earns mainly through interest income on business loans. Additional income is generated through processing fees and related charges. The lending model focuses on recurring income from loan repayments over the loan tenure.
Market Position
Aye Finance is regarded as a specialised NBFC in the MSME lending space, with a growing footprint in micro-enterprise finance. Its focused approach and risk controls position it among established niche players in this segment.
About Aye Finance IPO
The Aye Finance Limited IPO is a ₹1,010 crore public issue comprising a fresh issue of ₹710 crore and an offer for sale of ₹300 crore by existing shareholders. The offer is being managed by Axis Capital Limited, IIFL Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited as the Book Running Lead Managers, with KFin Technologies Limited acting as the registrar to the issue.
The IPO is priced in the ₹122 to ₹129 per share range, with a face value of ₹2 per share. Investors can apply in a lot size of 116 shares, translating to a minimum retail investment of ₹14,964 at the upper price band. The equity shares are proposed to be listed on BSE and NSE, and the issue follows a 100% book-built route.
The fresh issue proceeds will be used to strengthen the company’s capital base and support the expansion of its lending operations. Funds will primarily be deployed towards augmenting lending capacity, improving balance sheet strength, and meeting long-term business requirements. A portion of the proceeds will also be used for general corporate purposes, supporting sustainable growth.
The anchor bidding for the IPO opens on February 6, 2026, followed by the public issue opening on February 9, 2026 and closing on February 11, 2026. The allotment is expected to be finalised on February 12, 2026, with refunds and demat credit likely on February 13, 2026. The shares are scheduled to be listed on February 16, 2026.
IPO Details
Issue Type: 100% Book-Built Issue
Total Issue Size: ₹1,010 crore
Fresh Issue: ₹710 crore
OFS: ₹300 crore
Price Band: ₹122 – ₹129 per share
Face Value: ₹2 per share
Lot Size: 116 shares
Minimum Retail Investment: ₹14,964
Listing: BSE, NSE
Pre-IPO Placement: Not applicable
Employee Reservation: Not applicable
BRLMs:
Axis Capital Limited
IIFL Capital Services Limited
JM Financial Limited
Nuvama Wealth Management Limited
Registrar:
KFin Technologies Limited
IPO Timeline
Anchor Date: February 6, 2026
Issue Opens: February 9, 2026
Issue Closes: February 11, 2026
Allotment Finalisation: February 12, 2026
Refunds: February 13, 2026
Demat Credit: February 13, 2026
Listing Date: February 16, 2026
Valuation Snapshot
Price Band: ₹122 – ₹129 per share
Implied Market Cap: ~₹3,184 crore
P/E: ~24.6x
EV/EBITDA: ~8.2x
Price-to-Sales: ~2.1x
Pre-IPO Placement Price: Not applicable
At the upper price band, Aye Finance is valued at a moderate multiple compared to listed NBFC peers focused on MSME and micro-enterprise lending. The valuation reflects steady profitability, improving asset quality, and long-term growth potential from India’s expanding MSME credit market. However, modest return ratios and limited listing gains expectations suggest the IPO is more suitable for long-term investors rather than short-term listing-focused participants..
Industry Overview
The MSME lending industry covers credit to micro, small and medium enterprises that often lack full bank documentation. These lenders include banks, small finance banks, NBFCs, NBFC-MFIs and fintech lenders. NBFCs and NBFC-MFIs play an outsized role in filling gaps for small, informal and semi-formal businesses.
Market Size and Segmentation
India has millions of MSMEs and as of mid-2024 roughly 4.7 crore enterprises were on the Udyam portal, with the broader MSME sector accounting for about 30% of India’s GVA. The formal credit gap for MSMEs is very large; estimates and government notes point to an unmet demand running into several ₹ lakh crore, which keeps growth opportunities for NBFC lenders high.
Key Drivers & Industry Lifecycle
Growth is driven by expansion of formal credit access, increased digital onboarding, rising MSME formalisation through Udyam registration, and policy support for credit flows. NBFC credit growth has outpaced bank lending in recent quarters, signalling a maturing NBFC sector that is moving from niche to mainstream in the credit lifecycle.
Demand Dynamics
Demand comes from working capital, inventory financing, capex for small machinery, seasonality and everyday cash flow needs. Micro and small enterprises favour lenders that offer fast decisions, flexible collateral options and local underwriting. This preference supports the branch-plus-field-team model used by many NBFCs.
Competitive Landscape (Porter’s Five Forces)
The market shows competition from banks, small finance banks, NBFCs and fintechs. Entry requires capital, distribution reach and regulatory compliance, creating a moderate entry barrier. Customer switching is limited because many small businesses lack alternatives, which gives specialised NBFCs a durable niche if underwriting and collections remain disciplined.
Operational Benchmarks (Industry-Specific)
Key operational KPIs are gross loan portfolio/AUM, average ticket size, cost-to-income ratio, collection efficiency, GNPA and branch productivity (AUM per branch and AUM per employee). For microfinance, the sector’s average ticket size rose to about ₹62,000 by Sep-2025, highlighting a shift to slightly larger tickets and vintage customers. Successful lenders show low GNPA, improving ROA and efficient field operations.
Regulatory & ESG Environment
RBI and the Ministry of Finance set prudential norms, capital requirements and underwriting rules that NBFCs must follow. Recent policy work aims to broaden formal credit while protecting borrowers. ESG is rising as a governance and credit risk filter, with regulators focused on fair collection practices and financial inclusion outcomes.
Geopolitical & Supply Chain Risks
MSME cash flows can be hit by macro shocks such as inflation, slower GDP growth or trade disruption. Lenders with concentrated regional books or sectoral exposures face higher risk. Diversified, granular portfolios with low ticket sizes are better able to absorb localized shocks.
Future Outlook & Major Risks
The long-term outlook is positive because of the large unmet credit need, digital adoption and policy support for MSME credit. Major risks include funding cost volatility, asset quality stress in downturns, and increasing competition that may compress margins. Lenders that balance growth with strong credit controls will gain market share.
Conclusion & Investment Context
Investors looking at NBFCs focused on MSMEs should prioritise asset quality trends, capital adequacy, branch productivity and the cost of funds. Valuations for new listings will reflect the tradeoff between growth potential and current return ratios in the sector. Well governed, capitalised and field-efficient NBFCs are the most attractive risk-reward profiles.
Peer Analysis
Revenue Scale
CreditAccess Grameen – ₹5,700+ crore
Spandana Sphoorty – ₹3,200+ crore
Fusion Finance – ₹2,400+ crore
Muthoot Microfin – ₹1,900+ crore
Aye Finance – ₹1,500+ crore
Loan Book / AUM Size
CreditAccess Grameen – ₹23,000+ crore
Spandana Sphoorty – ₹10,500+ crore
Fusion Finance – ₹9,000+ crore
Muthoot Microfin – ₹8,500+ crore
Aye Finance – ₹6,000+ crore
Profit After Tax (PAT)
CreditAccess Grameen – ₹1,100+ crore
Spandana Sphoorty – ₹450+ crore
Fusion Finance – ₹500+ crore
Muthoot Microfin – ₹400+ crore
Aye Finance – ₹170+ crore
Return on Equity (ROE)
CreditAccess Grameen – 23–25%
Spandana Sphoorty – 18–20%
Fusion Finance – 17–19%
Muthoot Microfin – 20–22%
Aye Finance – ~7%
Market Capitalisation
CreditAccess Grameen – ₹22,000+ crore
Spandana Sphoorty – ₹1,900+ crore
Fusion Finance – ₹2,800+ crore
Muthoot Microfin – ₹3,000+ crore
Aye Finance – ~₹3,184 crore (post IPO)
Valuation (P/E Multiple)
CreditAccess Grameen – 18–20x
Spandana Sphoorty – 9–11x
Fusion Finance – 12–14x
Muthoot Microfin – 10–12x
Aye Finance – ~24.6x
Net Worth Strength
CreditAccess Grameen – ₹5,000+ crore
Spandana Sphoorty – ₹2,500+ crore
Fusion Finance – ₹2,200+ crore
Muthoot Microfin – ₹2,000+ crore
Aye Finance – ₹1,650+ crore
Gross NPA (Asset Quality)
CreditAccess Grameen – ~1.3%
Spandana Sphoorty – ~1.6%
Fusion Finance – ~1.9%
Muthoot Microfin – ~2.1%
Aye Finance – ~1.8%
Average Loan Ticket Size
CreditAccess Grameen – ₹55,000–₹60,000
Spandana Sphoorty – ₹60,000–₹65,000
Fusion Finance – ₹70,000–₹75,000
Muthoot Microfin – ₹65,000–₹70,000
Aye Finance – ₹2–5 lakh
Borrower Profile
CreditAccess Grameen – Rural women microfinance borrowers
Spandana Sphoorty – Joint liability group borrowers
Fusion Finance – Microfinance with MSME transition
Muthoot Microfin – Microfinance and small traders
Aye Finance – Micro and small enterprise owners
Geographical Reach
CreditAccess Grameen – Pan-India with South dominance
Spandana Sphoorty – East and Central India
Fusion Finance – North and East India
Muthoot Microfin – South and East India
Aye Finance – Pan-India with urban and semi-urban focus
Business Model
CreditAccess Grameen – Pure-play microfinance
Spandana Sphoorty – Group lending model
Fusion Finance – Hybrid microfinance and MSME
Muthoot Microfin – Microfinance plus enterprise loans
Aye Finance – Cash-flow-based MSME lending
Funding Profile
CreditAccess Grameen – Strong bank and market borrowings
Spandana Sphoorty – Bank-dominated funding
Fusion Finance – Banks and capital markets
Muthoot Microfin – Diversified borrowing mix
Aye Finance – Banks, NBFCs, development institutions
Growth Strategy
CreditAccess Grameen – Scale-driven growth
Spandana Sphoorty – Selective regional expansion
Fusion Finance – Customer graduation to MSME
Muthoot Microfin – Product diversification
Aye Finance – Branch expansion and higher ticket MSME loans
Key Insights
Compared to listed microfinance peers, Aye Finance operates at a smaller scale but with higher average ticket sizes and a pure MSME focus. While its profitability and ROE are currently lower than mature microfinance players, the company trades at a premium valuation reflecting expectations of long-term MSME credit growth and scalable underwriting. Investors should view Aye Finance as a growth-oriented MSME lender rather than a high-yield microfinance play.
Aye Finance IPO Reservation
Aye Finance IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 116 | ₹14,964 |
| Retail (Max) | 13 | 1,508 | ₹1,94,532 |
| S-HNI (Min) | 14 | 1,624 | ₹2,09,496 |
| S-HNI (Max) | 66 | 7,656 | ₹9,87,624 |
| B-HNI (Min) | 67 | 7,772 | ₹10,02,588 |
Financials of Aye Finance
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 7,116.01 | 6,338.63 | 4,869.59 | 3,126.00 |
| Total Income | 863.02 | 1,504.99 | 1,071.75 | 643.34 |
| Profit After Tax | 64.6 | 175.25 | 171.68 | 39.87 |
| NET Worth | 1,727.37 | 1,658.87 | 1,232.65 | 754.49 |
| Reserves and Surplus | 1,689.58 | 1,621.08 | 1,192.72 | 724.04 |
| Total Borrowing | 5,218.50 | 4,526.33 | 3,498.99 | 2,296.16 |
Assets
Total assets have increased sharply from ₹3,126.00 crore in FY23 to ₹7,116.01 crore as of September 2025. This strong asset growth indicates aggressive balance sheet expansion, likely driven by investments in subsidiaries, acquisitions, or capital-intensive business scaling. While growth in assets shows expansion intent, it also raises the importance of monitoring asset quality and returns generated from these assets.
Total Income
Total income has grown from ₹643.34 crore in FY23 to ₹1,504.99 crore in FY25, reflecting healthy revenue growth over the last three years. However, income for the half-year ended September 2025 stands at ₹863.02 crore, which suggests moderate growth momentum. Investors should track whether this pace sustains through the full year, especially given the rapid rise in assets.
Profit After Tax (PAT)
PAT has improved steadily from ₹39.87 crore in FY23 to ₹175.25 crore in FY25, indicating improving profitability and better operating leverage. The September 2025 PAT of ₹64.6 crore shows continued profitability, though margins should be monitored closely to ensure profits scale proportionately with asset growth and borrowings.
Net Worth
Net worth has strengthened significantly from ₹754.49 crore in FY23 to ₹1,727.37 crore as of September 2025. This improvement reflects retained earnings and capital infusion over time, providing a stronger equity base. A rising net worth improves financial stability, but it must translate into higher returns to justify shareholder capital.
Reserves and Surplus
Reserves and surplus have grown consistently from ₹724.04 crore in FY23 to ₹1,689.58 crore as of September 2025. This indicates that a large portion of profits has been retained in the business rather than distributed, supporting long-term growth and strengthening internal funding capacity.
Total Borrowings
Total borrowings have increased sharply from ₹2,296.16 crore in FY23 to ₹5,218.50 crore as of September 2025. This is the most critical metric to watch. The rapid rise in debt suggests that asset growth has been significantly debt-funded. While leverage can accelerate expansion, it also increases interest costs and financial risk if income growth or profitability slows.
Objective of Aye Finance IPO
To strengthen the company’s capital base and improve capital adequacy for future growth
To support expansion of the MSME loan portfolio through higher lending capacity
To meet incremental working capital requirements arising from business scale-up
To enhance long-term balance sheet strength and improve borrowing profile
To fund general corporate purposes supporting operational and strategic initiatives
OFS component provides partial exit to existing investors without impacting company cash flows
SWOT Analysis of Aye Finance IPO
Strengths
Focused MSME lending model with higher ticket sizes
Strong on-ground underwriting and cash-flow-based credit assessment
Diversified borrower base reducing concentration risk
Backing from reputed institutional investors
Weaknesses
Lower ROE compared to listed microfinance peers
Higher operating costs due to branch-led model
Dependence on borrowings for business growth
Opportunities
Large unmet MSME credit demand in India
Increasing formalisation of small businesses
Scope to scale loan book through branch expansion
Ability to cross-sell financial products to repeat borrowers
Threats
Asset quality stress during economic slowdowns
Rising funding costs impacting margins
Increasing competition from banks and fintech lenders
Conclusion
Aye Finance operates in a high-growth segment of India’s financial sector, focused on lending to micro and small enterprises that remain underserved by traditional banks. The company has shown steady growth in assets, income, and profitability, supported by a specialised MSME lending model and strong on-ground underwriting capabilities.
However, return ratios such as ROE are currently lower than established microfinance peers, while the IPO valuation is on the higher side relative to its scale and profitability. This limits the scope for short-term listing gains and makes valuation comfort a key consideration for investors.
Overall, the IPO is best suited for investors with a long-term horizon who want exposure to India’s expanding MSME credit opportunity and are comfortable with moderate near-term returns in exchange for future growth potential.
Disclaimer: Market Insiderz is not a SEBI registered investment advisor. The information provided here, including GMP, is for educational purposes only and subject to market volatility. Please consult a certified financial advisor and read the RHP carefully before investing.
FAQ on Aye Finance IPO
Aye Finance IPO is a public issue through which Aye Finance Limited plans to raise ₹1,010 crore to strengthen its capital base and expand its MSME lending business across India.
The Aye Finance IPO Price Band is fixed at ₹122 to ₹129 per share.
The Aye Finance IPO GMP is around ₹1, indicating muted listing expectations in the grey market.
The Aye Finance IPO Open Date is February 9, 2026.
The Aye Finance IPO Closing Date is February 11, 2026.
The Aye Finance IPO Lot Size is 116 shares, and retail investors must apply in multiples of this lot.
The minimum investment in Aye Finance IPO is ₹14,964, calculated at the upper price band for one lot.
The Aye Finance IPO Allotment Date is expected to be February 12, 2026.
The Aye Finance IPO Listing Date is expected to be February 16, 2026, on BSE and NSE.
The total issue size of Aye Finance IPO is ₹1,010 crore, which includes a fresh issue and an offer for sale.
The company plans to use IPO proceeds to strengthen capital adequacy, expand MSME lending, and meet general corporate requirements.
