| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹122 to ₹129 | 116 | 09th Feb, 2026 –11th Feb, 2026 | ₹1,010 Cr |
Aye Finance Ltd.
Aye Finance Ltd. (AYE) is a middle layer non-banking financial company (NBFC-ML) focused on providing loans to micro scale micro, small and medium enterprises (MSMEs) across India with annual turnovers ranging from Rs. 10-20 Lakhs. They offer a range of business loans for working capital and business expansion needs, against hypothecation of working assets or against security of property to customers across manufacturing, trading, service and allied agriculture sectors. They are among the leading NBFCs providing business loans to the largely underserved micro scale enterprises in India, with 586,825 active unique customers across 18 states and three union territories and with assets under management (AUM) of Rs. 6,028 crores, as of September 30, 2025. They offer small-ticket business loans with an average ticket size (ATS) on disbursement of Rs. 1,80,000. Product offerings comprise mortgage loans, ‘Saral’ Property Loans, secured and unsecured hypothecation loans. Machine learning and data analysis led underwriting based on business cash flows of a variety of business clusters has enabled them to maintain stable credit costs and scale up operations. They are highly diversified geographically through a pan-India network of 568 branches, reducing the systematic risk of the business.
Objective of the Aye Finance Ltd.
The company proposes to utilize net proceeds from the issue towards the following objects:
Augmenting the capital base to meet the company’s future capital requirements arising out of growth of business and assets.
Rationale To Aye Finance Ltd.
Unlocking India’s Rs. 117 trillion MSME credit gap through a granular, full-stack lending franchise
India’s ~6 crore MSMEs, of which nearly 98% are micro enterprises, contribute ~30% to national GDP yet remain significantly underpenetrated from a credit standpoint. As per CRISIL (FY25), total MSME credit demand stands at ~Rs. 159 trillion, with only 27-28% met through formal channels, leaving an estimated credit gap of ~Rs. 117 trillion. Structural constraints such as high perceived risk, limited documentation and elevated physical distribution costs have historically restricted formal lenders from effectively serving this segment. While banks have remained the major source of finance for MSMEs with credit requirements of Rs. 10 lakhs to Rs. 50 lakhs, the share of NBFCs has increased from 9.2% in FY19 to 16.6% in FY25, and is expected to rise further in this segment. AYE is a play into this untapped market with unique positioning in the micro enterprise lending space. It is the only provider among the peer MSME focused NBFCs to offer a full product line (secured and unsecured) to serve a large unaddressed customer segment. While AYE provides mortgage loans, they also specialise in efficient underwriting loans to businesses that intend to borrow loans against hypothecation of their working assets. This is evident from their product mix as on September 30, 2025 wherein mortgage form ~20% of the loan book while the remaining ~80% is composed of secured and unsecured hypothecation loans. Further with a granular portfolio and an average ticket size of ~Rs. 1,80,000, which is lower than peers, the company benefits from smaller and more affordable repayments, supporting portfolio diversification and improved credit risk management.
Seasoned leadership driving a diversified and disciplined growth engine
The company is led by Sanjay Sharma (IIT Bombay, IIM Bangalore), with over three decades of experience across global financial institutions including HSBC, Standard Chartered, HDFC Bank and ICICI Limited. The senior management team brings strong domain depth across lending, risk, technology and operations, with prior key leadership roles at various banks. The collective experience spans retail lending, credit underwriting, technology transformation and compliance, providing strong institutional capability to scale responsibly. A key strategy of the team has been on diversification. AYE is geographically the most diversified lender among the peer with no state having more than 15.8% AUM concentration. As of September 30, 2025, their operations span across 415 Indian districts, 18 states and 3 union territories, with 568 branches across India. This wide geographic footprint enables access to a large catchment area for customer acquisition while ensuring that AUM growth remains
well distributed across regions, thereby reducing exposure to state-specific economic, regulatory or operational disruptions. Another key differentiator lies in its loan origination strategy. The company follows a fully in-house origination model and does not rely on direct selling agents or third-party sourcing channels. This approach allows for tighter control over customer onboarding, stronger underwriting discipline and better alignment with target customer segments, thereby reducing early delinquencies that may arise from mis-selling. The effectiveness of this model is reflected in its operating metrics, with 29.3 loans per employee in FY25, the highest among peers. The in-house sourcing framework also supports deeper customer engagement, fosters long-term relationships and enhances customer stickiness over time.
Valuation of Aye Finance Ltd. IPO
The company’s valuation is supported by strong balance sheet expansion, improving operating scale and sustained profitability. AUM increased from Rs. 2,722 crores in FY23 to Rs. 5,534 crores in FY25, delivering a 42.6% CAGR, while disbursements grew at a 34.9% CAGR to Rs. 4,291 crores over the same period. Net worth expanded at a faster 48.3% CAGR to Rs. 1,659 crores, reflecting internal accrual strength and capital support for growth. Profitability metrics strengthened during the growth phase, with NIM rising from Rs. 369 crores in FY23 to Rs. 858 crores in FY25, registering a 52.6% CAGR, while NIM margins remained healthy at 15.3% in FY25. Operationally, the branch count increased from 398 in FY23 to 526 in FY25 and AUM per branch improved 24% over FY23-25, indicating productivity gains alongside scale. Asset quality metrics reflect growth-led stress but remain supported by provisioning buffers and collection infrastructure. GNPA increased from Rs. 65 crores in FY23 to Rs. 217 crores in FY25, with GNPA ratio rising to 4.21%, while credit cost grew in line with portfolio seasoning to Rs. 289 crores in FY25. Despite this, provisioning coverage ratio remained at 67.6% in FY25, and collection efficiency stayed above 91%, demonstrating recovery discipline. The company continues to maintain strong capital buffers, with CRAR improving to 34.9% in FY25, providing adequate headroom for further expansion. The portfolio mix remains balanced, with fixed-rate loans forming 65% and floating-rate loans 35% as of FY25, enabling margin stability. The net interest income (NII) grew at 42.3% over FY2024-25 period to Rs. 699 crores, while the net profit doubled to Rs. 175 crores over the same period. At the upper end of the price band of Rs. 129 per share, the issue is valued at a P/B of 1.84x based on FY25 earnings. The valuation is broadly in line with industry peers. Given its scalable model, expanding distribution footprint and improving earnings trajectory, we recommend a “Subscribe” rating for the issue
What is the Aye Finance Ltd. IPO?
The initial public offer (IPO) of Aye Finance Ltd. offers an early investment opportunity in . A stock market investor can buy Aye Finance Ltd.IPO shares by applying in IPO before All Aye Finance Ltd.shares get listed at the stock exchanges. An investor could invest in Aye Finance Ltd IPO for short term listing gain or a long term.
How to apply for the Aye Finance Ltd IPO through StoxBox?
To apply for the Aye Finance Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Aye Finance Ltd IPO open?
Aye Finance Ltd IPO is opening on 09 Feb Jan 2026. Apply Now
What is the lot size of the Aye Finance Ltd IPO?
The Lot Size of Aye Finance Ltd IPO is 116 equity shares. Login to your account now.
When is the Aye Finance Ltd allotment date?
The allotment Date for Aye Finance Ltd IPO is 12th Feb 2026. Login to your account now.
When is the Aye Finance Ltd IPO listing date?
The listing Date for Aye Finance Ltd IPO is 16th Feb 2026. Login to your account now
What is the minimum investment required for the Aye Finance Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,964. Login to your account now
What is the maximum investment allowed for the Aye Finance Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,94,532. Login to your account now
What are the risks associated with investing in the Aye Finance Ltd IPO?
- AYE is subject to the risk of non-payment or default by our borrowers which may adversely affect their financial condition. Gross NPA ratio of the company has increased from 2.5% FY23 to 4.2% in FY25.
- The operations depend on the accuracy and completeness of information provided by the customers and third party service providers and their reliance on any erroneous or misleading information may affect the judgement of their creditworthiness, as well as the value of and title to the collateral.
- In H1FY26, unsecured loans comprised 38% of total AUM. If AYE are unable to recover such receivables in a timely manner or at all, the cash flows and financial condition may be adversely affected.
- Volatility in interest rates could have an adverse effect on their net interest income and net interest margin, thereby affecting the results of operations and cash flows.
When will the Aye Finance Ltd IPO shares be credited to my Demat account?
The Aye Finance Ltd. IPO be credited to the account on allotment date which is 12th Feb 2026. Login to your account now
Where can I find the Aye Finance Ltd IPO prospectus?
The prospectus of Aye Finance Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
