Aye Finance IPO opens on Monday: Check key details, latest GMP, reviews & more

The initial public offering (IPO) of Aye Finance is set open for subscription on Monday, February 09 as non-banking lender is looking to mobilize a total of Rs 1,010 crore IPO from primary market. It will be offering its shares in the range of Rs 122-129 apiece with a lot size of 116 equity shares. The issue will close for subscription on Wednesday, February 11.

Aye Finance offers exposure to India’s growing micro MSME sector, said Sushil Finance. “Considering NBFC sector volatility and risk and looking at all the factors, risks, opportunities and valuation, Investors may invest with Long term horizon to the issue,” it added.

Aye Finance provides business loans to MSMEs and fundamentals appear solid, with the company showing consistent revenue and profit growth, said Swastika Investmart. “Company implying a P/E multiple near 14 times based on FY25 earnings reasonably priced compared with some listed NBFC peers. The IPO is suitable for long-term investors with belief in MSME lending growth and moderate NBFC credit risk appetite,” it said.

Incorporated in 1993, New Delhi-based Aye Finance is a NBFC, which offers secured and unsecured small business loans for working capital, including mortgage loans, ‘Saral’ Property Loans, secured and unsecured hypothecation loans, primarily to micro-scale MSMEs.

Profit of Aye Finance has declined 40 per cent YoY in 1HFY26 primarily due to sharp rise in impairment cost, NIM compression and higher operating expenses, said SBI Securities. “We would like to monitor the progress of reduction in credit cost with the company’s mortgage-heavy loan mix strategy. Hence, we recommend investors to ‘avoid’ the issue and track its performance.”

The issue includes a fresh share sale of Rs 710 crore and an offer-for-sale (OFS) of up to 2,32,55,813 equity worth Rs 300 crore, which includes only a 10 per cent reservation for retail investors. 75 per cent share shall be reserved for qualified institutional bidders, while non institutional investors will have 15 per cent of the allocation in the IPO.

If you believe in MSME credit growth and are comfortable with NBFC cyclicality, a small allocation for long-term hold might be reasonable, but assess valuation carefully, said Ajmera Associates. “High risk-tolerant investors with a view of 2–3 years may consider applying after reviewing their overall portfolio and financial goals.”

Axis Capital, IIFL Capital Services, JM Financial and Nuvama Wealth Management are the book running lead managers of the issue, while KFin Techologies is the registrar for the issue. Last heard, the company was commanding no grey market premium (GMP), suggesting a flat listing for the investors. Shares of Aye Finance shall be listed on both BSE and NSE on Monday, February 16.