Aye Finance IPO Date, GMP, Price Range, Profit

Introduction: Aye Finance IPO

The IPO of Aye Finance has started attracting significant attention from investors who want exposure to India’s fast-growing financial services space. As a Non-Banking Financial Company (NBFC), Aye Finance specializes in lending to micro and small businesses, a segment that often struggles to get timely credit from traditional banks.

India’s MSME (Micro, Small and Medium Enterprises) sector is one of the strongest drivers of economic growth, contributing meaningfully to employment and GDP. As this sector continues to expand, the need for quick, flexible, and accessible financing is increasing. Aye Finance addresses this gap by offering customized loan products designed specifically for small entrepreneurs and business owners.

By focusing on an underserved yet high-potential market, Aye Finance plays an important role in strengthening grassroots entrepreneurship. This business model, combined with long-term growth opportunities in the MSME lending space, makes the Aye Finance IPO an interesting option for investors with a long-term perspective.

Aye Finance IPO Details

Particulars	Details
IPO Opening Date	February 9, 2026
IPO Closing Date	February 11, 2026
Listing Date	February 16, 2026
Face Value	₹1 per equity share
Price Band	₹122 to ₹129 per share
Lot Size	116 Shares (Minimum)
Total Issue Size	₹1,010 Crore
Listing Exchange	NSE, BSE

Issue Structure and Objectives

Aye Finance plans to raise a total of ₹1,010 crore through its IPO. The issue is divided into two parts: a Fresh Issue and an Offer for Sale (OFS), each serving a different purpose.

Fresh Issue – ₹710 crore

The Fresh Issue represents new capital being infused directly into the company. Aye Finance intends to use these funds primarily to expand its lending operations, allowing it to disburse more loans to micro and small businesses across India. In addition, part of the proceeds will be used to strengthen the company’s capital base, which is important for supporting future growth and maintaining healthy regulatory ratios.

Offer for Sale (OFS) – ₹300 crore

The Offer for Sale component involves existing shareholders selling a portion of their holdings. This includes well-known investors such as Alphabet’s CapitalG and Alpha Wave. The money raised through the OFS will go to these selling shareholders and not to the company itself. However, it does help improve share liquidity and provides partial exits to early investors.

Overall, the IPO structure shows a clear focus on growth, with a large portion of the funds coming through the Fresh Issue, which is generally viewed positively by long-term investors.

Financials: How Is the Company Doing?

Aye Finance has delivered strong financial performance over the last few years, reflecting the growing demand for credit among micro and small businesses. The company’s numbers indicate both rapid growth and improving scale, which are important factors for an NBFC.

1. Revenue Growth

Aye Finance reported impressive revenue growth, with revenue increasing by more than 40% between FY24 and FY25. In FY25, total revenue reached approximately ₹1,505 crore, highlighting the company’s expanding loan disbursements and rising interest income as its customer base grows.

2. Profitability

The company has also shown healthy profitability. In FY25, Aye Finance posted a net profit of ₹175.2 crore, indicating that it is not only growing fast but also doing so in a financially sustainable manner. Consistent profits are a positive sign for investors, especially in the lending business where asset quality and cost control are crucial.

3. Loan Book (AUM)

Aye Finance’s Assets Under Management (AUM) crossed ₹6,000 crore by late 2025, demonstrating strong momentum in loan book expansion. This rapid increase in AUM suggests that the company is successfully scaling its operations and gaining deeper penetration in the MSME lending segment.

Overall, Aye Finance’s financial performance points to a fast-growing NBFC with improving scale and profitability, although investors should continue to track asset quality and credit risk as the loan book expands.

Why Investors Are Excited About Aye Finance

Aye Finance has attracted strong interest from investors due to a combination of credible backing, a large addressable market, and a scalable business model. Several key factors make the company stand out in the NBFC space.

✅ Strong and Credible Backers

One of the biggest confidence boosters for investors is the presence of Alphabet (Google’s parent company) as an investor. Backing from a global technology leader adds significant credibility and governance comfort, and signals that the business model has been vetted by sophisticated institutional investors.

✅ Large and Untapped Market Opportunity

India is home to millions of micro and small businesses that still struggle to access formal credit. Traditional banks often find this segment risky or inefficient to serve. Aye Finance operates right at the heart of this opportunity by focusing exclusively on these underserved businesses, giving it access to a huge and long-term growth market.

✅ Technology-Driven Lending Model

Aye Finance uses AI, data analytics, and alternative data to assess borrower creditworthiness. This technology-driven approach allows the company to process loans faster, reduce manual effort, and make more informed lending decisions compared to traditional banks. Over time, this can help improve efficiency and manage credit risk better.

✅ Wide Geographic Presence

With over 560 branches spread across 18 states, Aye Finance has built a strong physical presence across India. This wide geographic reach reduces dependence on any single region and supports diversified growth, which is an important risk-management factor for lending businesses.

Overall, the combination of strong backing, a massive underserved market, smart use of technology, and nationwide reach explains why investors are closely watching the Aye Finance IPO.

Aye Finance IPO GMP (Grey Market Premium)

The Grey Market Premium (GMP) refers to the extra amount that some investors are willing to pay for an IPO share before it officially lists on the stock exchange. Although the grey market is unofficial and unregulated, GMP is often used as an indicator of short-term market sentiment.

As of now, the GMP for Aye Finance IPO is hovering in the range of ₹0 to ₹5. This indicates that the market is currently cautious and not expecting aggressive short-term gains from the listing.

A low GMP generally suggests that the stock may list close to its issue price, which is estimated to be around ₹129–₹134, rather than delivering a large “listing pop” on day one. For investors who are looking mainly for listing gains, this may appear less attractive.

However, it’s important to remember that GMP can change quickly based on market conditions, subscription numbers, and overall sentiment. Long-term investors should focus more on the company’s business fundamentals and growth prospects rather than relying solely on grey market signals.

Risks Involved

While Aye Finance offers attractive growth potential, it’s important for investors to understand the key risks associated with the business, especially since lending is a risk-sensitive sector. Below are some factors to keep in mind before investing.

⚠️ Asset Quality Concerns

Aye Finance’s Gross Non-Performing Assets (GNPA) have increased to around 4.21% recently. This means a higher portion of borrowers are delaying or struggling to repay their loans. For an NBFC focused on micro and small businesses, asset quality needs close monitoring, as any further deterioration could impact profitability.

⚠️ High Employee Attrition

Some analysts have highlighted a relatively high employee attrition rate at the company. This can be a concern because Aye Finance’s lending model depends heavily on on-ground teams and relationship managers who understand local businesses. Frequent staff turnover may affect customer relationships, credit assessment quality, and operational efficiency.

⚠️ Exposure to Unsecured Loans

Approximately 38–42% of Aye Finance’s loan portfolio is unsecured, meaning these loans are not backed by physical collateral. While unsecured lending allows faster loan disbursal and wider reach, it also increases credit risk if borrowers default, as recovery options are limited.

In summary, investors should weigh Aye Finance’s strong growth potential against these operational and credit-related risks. Careful tracking of asset quality, employee stability, and risk management practices will be crucial going forward.

Final Thoughts

Aye Finance operates in a fast-growing and high-potential segment of India’s financial ecosystem. By focusing on micro and small businesses, the company is well placed to benefit from India’s long-term MSME growth story. Its business model, expanding loan book, and reasonable valuation compared to peers make it an interesting option for long-term investors.

That said, investors should align their expectations with market realities. The low Grey Market Premium (GMP) indicates limited enthusiasm for short-term gains, suggesting that the stock may not deliver a strong listing-day pop. Therefore, investors looking purely for quick listing profits may want to approach the IPO with caution.

In summary, the Aye Finance IPO appears more suitable for patient, long-term investors who are comfortable with the risks of lending to small businesses and believe in the company’s ability to scale responsibly over time.

Note: This article is for educational purpose only, it provides no recommendation of any sort. I am no expert to give you any recommendation so decide accordingly.