Aye Finance Limited is a leading Non-Banking Financial Company (NBFC) focused on providing business loans to micro and small enterprises (MSMEs) across India. The company primarily caters to underserved and informal businesses, especially in semi-urban and rural regions where access to formal banking credit remains limited.

The company generates revenue mainly through interest income on secured and unsecured MSME loans. Aye Finance operates a unique branch-led “phygital” model, which combines physical branch presence with technology-driven underwriting and risk assessment tools. This hybrid approach enables efficient credit evaluation and loan disbursement to small business borrowers.

The company is launching a Book Built IPO amounting to ₹1,010.00 Crore.

The issue structure is as follows:

• Fresh Issue: 5.50 crore equity shares aggregating to ₹710.00 Crore

• Offer for Sale (OFS): 2.33 crore equity shares aggregating to ₹300.00 Crore

The IPO opens for subscription on February 09, 2026, and closes on February 11, 2026. The allotment is expected to be finalised on or about February 12, 2026, and the shares are proposed to be listed on both the BSE and NSE on or about February 16, 2026.

Price Band, Market Capitalisation and Investment Requirements

The price band of the Aye Finance IPO is set at ₹122 to ₹129 per equity share.

At the upper band of ₹129 per share, the company’s estimated market capitalisation will be approximately ₹3,183.52 Crores.

Lot Size and Minimum Investment

• Lot Size: 116 shares

• Retail Minimum Investment: 1 lot (116 shares)

  • ₹129 × 116 = ₹14,964

• HNI Minimum Investment: 14 lots (1,624 shares)

  • ₹129 × 1,624 = ₹2,09,496

The minimum investment size is relatively affordable compared to several other mainboard IPOs.

Business Model of Aye Finance Limited

Aye Finance focuses on the micro and small enterprise lending segment, which is one of the fastest-growing credit markets in India.

1. MSME Loan Portfolio

The company provides:

• Secured loans

• Unsecured working capital loans

• Business expansion loans

The target customers include small manufacturers, traders, retailers and service providers operating in semi-formal and informal sectors.

2. Phygital Operating Model

Aye Finance uses a branch-led sourcing network combined with digital underwriting systems. Field officers collect customer data physically, while credit decisions are supported by proprietary technology systems.

This approach helps:

• Reduce default risk

• Speed up loan approvals

• Improve operational efficiency

3. Revenue Structure

The primary source of income is interest earned on loans disbursed. As an NBFC, maintaining asset quality and controlling Non-Performing Assets (NPAs) is crucial for profitability.

4. Geographic Reach

The company operates across multiple Indian states, focusing heavily on Tier-2, Tier-3 cities and rural markets, where formal credit penetration remains low.

Industry Outlook: MSME Lending in India

India’s MSME sector contributes significantly to:

• GDP growth

• Employment generation

• Manufacturing output

However, a large portion of MSMEs still face a credit gap, as traditional banks often hesitate to lend to informal businesses.

NBFCs like Aye Finance benefit from:

• Faster loan processing

• Flexible underwriting models

• Higher yield opportunities

With increasing formalisation of the economy and digital credit assessment tools, the MSME lending segment is expected to grow steadily in the coming years.

Strengths of Aye Finance Limited

1. Strong MSME Focus

The company specialises exclusively in MSME lending, building domain expertise in assessing small business creditworthiness.

2. Phygital Advantage

The combination of technology and physical outreach enables better risk control and customer engagement.

3. High Demand Segment

MSME credit demand in India remains structurally strong due to under-penetration.

4. Diversified Borrower Base

Serving thousands of small businesses reduces dependency on a few large borrowers.

Risks Investors Should Consider

1. Credit Risk

As an NBFC lending to informal businesses, the company faces higher default and NPA risk compared to large corporate lending.

2. Economic Slowdown Impact

Small businesses are more vulnerable to economic downturns, which may impact loan repayment capacity.

3. Regulatory Risk

NBFCs operate under RBI regulations. Any tightening of norms may affect operations.

4. Interest Rate Risk

Fluctuations in borrowing costs can impact net interest margins.

Use of IPO Proceeds

The fresh issue of ₹710.00 Crore will be used by the company for:

• Strengthening capital base

• Expanding loan book

• General corporate purposes

The Offer for Sale portion of ₹300.00 Crore will go to existing shareholders and will not directly benefit the company.

Lead Managers and Registrar

The IPO is managed by reputed investment banks:

• Axis Capital Limited

• IIFL Capital Services Limited

• JM Financial Limited

• Nuvama Wealth Management Limited

The registrar to the issue is KFin Technologies Limited.

Aye Finance IPO GMP Today

The Grey Market Premium (GMP) of Aye Finance IPO is currently expected to be ₹0.

Investors must understand:

• GMP trading is unofficial and unregulated.

• It does not guarantee listing gains.

• It reflects speculative demand and supply in the grey market.

GMP is shared only for informational purposes and should not be the sole basis for investment decisions.

Valuation Analysis

At a market capitalisation of ₹3,183.52 Crores, investors should evaluate:

• Loan book growth

• Net Interest Margin (NIM)

• Asset quality (GNPA/NNPA levels)

• Return on Assets (ROA)

• Capital adequacy ratio

Comparing the company’s valuation with other listed MSME-focused NBFCs will provide better clarity.

Who Should Consider This IPO?

Suitable For:

• Investors bullish on MSME credit growth in India

• Long-term investors seeking exposure to NBFC sector

• Moderate risk investors comfortable with lending business risks

Not Suitable For:

• Highly conservative investors

• Those uncomfortable with credit cycle risks

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