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Aye Finance IPO

Aye Finance IPO

Finance - NBFC
open
₹14,152Min. investment
  1. Pre-apply
    6 Feb
  2. Bid start
    9 Feb
  3. Bid end
    11 Feb
  4. Allotment
    12 Feb
  5. Release of funds
    13 Feb
  6. Demat transfer
    13 Feb
  7. Listing
    16 Feb

Aye Finance Limited IPO Details

SectorFinance - NBFC
Price range₹122 – ₹129
IPO type
Regular
Lot size116 shares
Issue size₹1,010Cr
Red Herring Prospectus
Read
Market Cap
₹3,183CrLower than sector avg
RevenueApr 2024 - Mar 2025
₹1,459.7CrHigher than sector avg
Growth rate3Y CAGR
53.02%Higher than sector avg

Aye Finance Limited IPO Overview

Aye Finance Limited IPO date

Aye Finance Limited IPO will open for subscription on February 9, 2026, and the closing date for the IPO is February 11, 2026. After this, investors are expected to be updated about the allotment status on February 12, 2026.

Investors who have been allotted shares can expect them to be credited to their demat account on February 13, 2026. The shares will be listed on the NSE and the BSE on Monday, February 16, 2026.

Aye Finance Limited IPO price band

The IPO includes a fresh issue and an offer for sale. The IPO price band has been set between ₹122 to ₹129 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue, comprising a fresh issue of ₹710 crore and an offer for sale of ₹300 crore. Aye Finance IPO listing price will be determined on February 16, 2026. The listing price is the price at which a company’s shares debut on the stock exchanges.

Aye Finance Limited IPO lot size

Aye Finance Limited IPO details have been declared. The minimum lot size for an application is 116 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹1,010.00 crore.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily

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Revenue
Higher revenue means strong sales and good market demand
This IPO
₹1,459.7Cr
This sector
₹789.63Cr
Compare with companies
3Y growth
Strong 3-year growth shows consistent progress and potential
This IPO
53.02%
This sector
0.02%
Compare with companies
PAT
Higher PAT means strong profitability and efficient cost management
This IPO
₹175.2Cr
This sector
₹117.25Cr
Compare with companies
Market cap
Higher market cap means strong confidence but may suggest overvaluation
This IPO
₹3,183Cr
This sector
₹6,213.48Cr
Compare with companies
P/E ratio
Lower ratio usually means stock is undervalued
This IPO
13.81
This sector
52.32
Compare with companies

Objectives

Capital requirements and issue expenses
The company will use the net IPO proceeds to strengthen its capital base for future funding needs.

Strength and Weakness

Leading lender to micro MSMEs in India

The company is a specialised NBFC that focuses on micro enterprises, which make up about 98% of India's MSME sector. It targets borrowers with an annual turnover of ₹0.2 to 1 crore, a group that banks often overlook. As of September 30, 2025, the company had 586,825 active customers. This makes it the MSME lender with the largest customer base as compared to other NBFCs, operating in a broad and underdeveloped credit market.

Strong pan-India sourcing and low concentration risk

As of September 30, 2025, the company operated 568 branches in 18 states and 3 union territories. This makes it one of the most geographically diverse MSME-focused NBFCs in India. The top three states contributed to 41.3% of AUM, reducing the concentration of risk and allowing for growth.

Technology-driven model

Aye Finance uses a cloud-based ‘phygital’ model to serve micro-ticket MSME loans efficiently. The average loan amount is ₹0.018 crore. As of September 30, 2025, the company has achieved 100% paperless and cashless disbursements, which helps them scale up cost-effectively. They have automated underwriting in over 70 business clusters, with about 24% processed straight-through. This is supported by AI/ML models, allowing for scalable growth without significant capital expenses.

Diversified and cost-efficient funding platform

The company has a balanced mix of liabilities. It includes term loans and PTCs accounting for 59.02%, NCDs at 28.95%, and ECBs contributing 12.03%. This structure helps reduce concentration and refinancing risks. The average cost of borrowing remained steady at 11.2% in H1FY26, showing an improved credit profile. Bank borrowings rose from 18.57% in FY23 to 29.95% as of FY25, and was 31.38% as of September 30, 2025. This change reflects a move toward more stable and cost-effective funding.

Data-driven collections supporting asset quality

Stage 2 assets improved to 1.65% of gross loans as of September 30, 2025, down from 1.82% in FY25. This marks the lowest percentage among peer MSME-focused NBFCs. Non-starter assets stayed low at 0.08% in H1FY26. Early delinquency levels fell to 0.29% from 0.34%, reflecting disciplined execution and effective portfolio management.

About Aye Finance Limited

Aye Finance Limited is a middle-layer non-banking financial company focused primarily on lending to very small-scale MSMEs all over India, mainly for working capital and business expansion. As of September 30, 2025, the company had 586,825 active customer accounts in 18 states and 3 UTs and an AUM of ₹6,027.62 crore.
The company operates under a phygital model, which means it has a strong physical branch and field presence along with digital processes, thus allowing it to reach semi-urban markets very effectively. The company’s average loan size is ₹1.8 lakhs. Its loan portfolio is geographically well balanced, with no single state contributing more than 15.77% of AUM and the top 5 states together making up 57%. By geographical zones, AUM is distributed between the North (34.8%), East (27.8%), West (22.7%), and South (14.7%) areas, and it is present in 415 districts through 568 branches.
The credit portfolio is spread across four products, with the major share of the loan book going to secured hypothecation loans at 41.01% of AUM and unsecured hypothecation loans at 37.97%, followed by mortgage loans at 19.28% and saral property loans at 1.74%. Mortgage loans have grown substantially as they made up only 1.86% of the loan book in March 2023, which has now increased to 19.28% by September 2025. The average ticket size of these loans is ₹4.1 lakhs, and the average tenure is over 75.12 months.
The primary clientele are micro enterprises with annual turnover of between ₹20 lakh and ₹100 lakh, mostly situated in semi-urban areas. More than 90.9% of the clients are either living in or running their businesses from the premises that they own, 94% customers have 5 or fewer employees, and 37.2% of newly acquired customers are first-time borrowers, normally coming from informal sources of credit that charge an interest rate of 36% to 60% per annum.
On the operational front, the company has developed impressive collection mechanisms with more than 93.45% of the active loans being under ACH mandates and the cashless mode accounts for over 81.83% of collections in H1FY26. Gross NPAs stood at 4.85% and net NPAs at 1.78% as of September 2025, whereas stage 2 assets at 1.65% are significantly lower than those of the peer group. Collection efficiency was at 89.72%, and capital adequacy was maintained at a robust level of 32.27%.
Branch network expansion had been the key driver of growth, with the company increasing its network from 398 branches in FY23 to 568 branches by September 2025, of which around 58.63% have been matured for over 3 years. Customer engagement is still at high levels, as can be seen from the high repeat purchases, a low foreclosure rate of less than 2.86% in FY25, and a net promoter score of 89.65%. Disbursements rose from ₹2,357.09 crore in FY23 to ₹4,291.34 crore in FY25, with ₹2,316.79 crore disbursed in H1FY26. The portfolio is also diversified by industry, with top sectors being trading, which contributed 49.68% of AUM, followed by livestock and allied activities at 27.12%, manufacturing at 13.26%, and services at 9.94%, which are distributed across more than 70 MSME clusters.
About 98% of the MSMEs in India are micro enterprises, which can be seen in the MSME sector of India as heavily focused on micro enterprises and hence making small-ticket loans the largest addressable market segment for such loans. Based on estimates, MSME credit requirement is expected to be around ₹159 lakh crore as of FY25, but only about 27%-28% of it is currently being financed through formal channels. Thus, a credit gap of approximately ₹34 lakh crore exists that is not financed even by the formal financial system.
India has over 5.77 crore MSMEs, which contribute approximately 30% to the national GDP, and have a substantial impact on the Indian economy, accounting for almost 30% of the country's GDP. However, the sector is still grappling with a major financing gap, as the demand for credit has gone unmet to the tune of ₹103 lakh crore, which was expected to increase to about ₹117 lakh crore by FY25. This growing gap clearly indicates a strong potential for lenders focusing on micro and small enterprises.
Multiple NBFCs are making steady inroads within this segment, especially in the loan segment of ₹1 lakh to ₹5 lakh, where their market share has gone up from 9.2% in FY19 to 16.6% in FY25, and this is likely to increase further in future. The company enjoys a considerable leverage on prices in the micro enterprise segment where the service is under penetrated, since the interest rates it charges on formal loans which are up to 26% per annum for mortgage loans and 32% per annum for hypothecation loans, are significantly lower than the 36% to 60% per annum rates that informal sources such as money lenders and chit funds charge.
Now, Aye Finance Ltd is launching its initial public offering (IPO), which consists of a fresh issue of ₹710 crore and an offer for sale of ₹300 crore. The total issue size of the IPO is ₹1,010 crore. Its shares will be listed on the NSE and BSE.

How to apply for the Aye Finance IPO?

If you are interested in this investment opportunity but unsure how to apply for the Aye Finance IPO, here are the steps that you need to follow.
When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Aye Finance IPO on Upstox:
  • Log in to your Upstox account, using your six-digit PIN
  • After logging in, click on ‘Discover’
  • On the ‘Discover’ tab, you will find the ‘Invest in IPO’ section
  • Under the Invest in IPO section, look for the ‘Aye Finance IPO’ tab and click on it
  • Now fill in all the required information, like ‘bid price’ and ‘lot size’
  • Confirm and click on ‘Apply’
  • Accept the mandate on your UPI app

**How to check Aye Finance IPO Allotment Status? **

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally completed on the next working day after an IPO closes.
Here’s a step-by-step guide on how to check the Aye Finance IPO allotment status:
  • Login to your Upstox account, using your six-digit PIN
  • After logging in, click on ‘Discover’
  • On the ‘Discover’ page, you will find the ‘Invest in IPO’ section
  • Under the Invest in IPO section, you will find the ‘View all’ option
  • Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
  • In the ‘IPO’ tab, click on ‘My applications’
  • In ‘My applications’, under the History section, your Aye Finance IPO allotment status will be mentioned

How to pre-apply for the Aye Finance IPO?

You can pre-apply for the Aye Finance IPO on Upstox. The pre-application for this IPO, which means the pre-apply open date, usually begins a day before the IPO opens for subscription.
Follow these steps to pre-apply for the IPO:
  • Login to your Upstox account, using your six-digit PIN
  • After successfully logging in, click on ‘Discover’
  • On the Discover tab, you will find the ‘Invest in IPO’ section
  • Under the Invest in IPO section, look for the ‘Aye Finance IPO’ tab and click on it
  • Now fill in all the required information, like ‘bid price’ and ‘lot size’
  • Confirm and click on ‘Pre-Apply’
  • Accept the mandate on your UPI app

Frequently asked questions

How to invest in the Aye Finance IPO ?

Investors can apply for the Aye Finance IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Aye Finance IPO ?

The issue size of the Aye Finance IPO is 1010 Cr.

What is 'pre-apply' for Aye Finance IPO ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Aye Finance IPO shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.
Ipo opens on 9 Feb 2026, 10:00 AM