Summary of this article
The Rs 1,010-crore Aye Finance IPO will be available from Feb 9 to Feb 11
The IPO comprises of fresh issue worth Rs 710 crore and an offer for sale component of Rs 300 crore
The price band for the issue has been fixed at Rs 122–129 per share
The initial public offering (IPO) of Aye Finance will open for subscription on February 9, 2026, and close on February 11. The company aims to raise Rs 1,010 crore through a fresh issue of 55 million equity shares aggregating to Rs 710 crore and an offer for sale (OFS) of 23.30 million shares worth Rs 300 crore.
The price band for the issue has been fixed at Rs 122–129 per share, with a lot size of 116 shares. At the upper end of the price band, retail investors will need to invest a minimum of Rs 14,964 to apply for the IPO. For non-institutional investors (NIIs), the minimum investment is Rs 2.09 lakh for small NIIs and Rs 10.02 lakh for big NIIs.
The allotment of shares is expected to be finalised on February 12, 2026, while the stock is expected to list on the BSE and NSE on February 16, 2026. Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management are the book-running lead managers to the issue, while Kfin Technologies is acting as the registrar.
Aye Finance IPO Reservation
According to the IPO reservation structure, qualified institutional buyers (QIBs) will be allocated not less than 75 per cent of the net offer. Retail investors will be allotted up to 10 per cent, while NIIs will get up to 15 per cent of the issue.
Aye Finance IPO Objectives
The company plans to utilise the net proceeds from the fresh issue to augment its capital base and meet future capital requirements arising from the growth of its business and asset base. The objects of the issue have not been appraised by any bank or financial institution. Any variation in the utilisation of net proceeds, as disclosed in the red herring prospectus (RHP), will be subject to regulatory and compliance requirements, including prior approval from shareholders, the company said in its RHP.
Aye Finance IPO Valuation
Aye Finance IPO is priced at a price-to-book (P-B) value of 1.45 times, compared to 1.71 times as on March 31, 2025. Post issue, earnings per share (EPS) are expected to decline from Rs 9.14 to Rs 5.24 due to equity dilution, resulting in an increase in the price-to-earnings (P-E) multiple from 14.11 times to 24.64 times.
Based on the upper end of the price band, the company’s market capitalisation is estimated at Rs 3,183.52 crore.
The company’s return on equity (ROE) moderated to 7.63 per cent as on September 30, 2025, from 12.12 per cent at the end of FY25, indicating relatively lower return generation in the recent period. Return on net worth (RoNW) also declined to 3.82 per cent from 12.12 per cent during the same period. Debt-to-equity ratio rose to 3.02 as on September 30, 2025, as against 2.73 at the end of FY25.
Aye Finance: What The Company Does
Incorporated in 1993, Aye Finance is a non-banking financial company (NBFC) focused on providing secured and unsecured small business loans to micro and small enterprises. Its product offerings include working capital loans, mortgage loans, ‘Saral’ property loans, and secured and unsecured hypothecation loans. The company primarily caters to micro small and medium enterprises (MSMEs) operating across manufacturing, trading, services and allied agriculture sectors. It provides loans for business expansion, typically secured against working assets or property. As on September 30, 2025, Aye Finance served 586,825 active customers across 18 states and three Union Territories (UTs), with a steadily growing assets under management (AUM) base.
Aye Finance Financials
For the half-year ended September 30, 2025, Aye Finance reported a total income of Rs 863.02 crore and a profit after tax (PAT) of Rs 64.60 crore. In FY25, the company recorded total income of Rs 1,504.99 crore, while PAT stood at Rs 175.25 crore. The company’s balance sheet has expanded steadily over the years. Total assets rose to Rs 7,116.01 crore as on September 30, 2025, from Rs 3,126 crore as on March 31, 2023. Net worth increased to Rs 1,727.37 crore as on September 2025 from Rs 754.49 crore in FY23.
Borrowings also increased in line with business growth, with total borrowings standing at Rs 5,218.50 crore as on September 30, 2025, compared to Rs 2,296.16 crore as on March 31, 2023.
