Aye Finance Ltd IPO
Finance
Price Band
₹122 – ₹129
Lot Size
116
Minimum Bid Quantity
116
Minimum Investment
₹14964
Issue Size
₹1010Cr
Opens
2026-02-09
Closes
2026-02-11
Listing
16-02-2026
Subscription Status
Qualified Institutional Buyers
1.5 x
Non-Institutional Investor
0.05 x
Retail Individual Investor
0.76 x
Total
0.97 x
IPO Details
Issue Type
EQUITY
Face Value
₹2
Tick Size
1
ISIN
INE501X01029
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Incorporated in 1993, Aye Finance Limited is an NBFC 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. The company offers business loans for business expansion, secured by working assets or property, to customers in manufacturing, trading, service, and allied agriculture sectors. The company is serving 586,825 active customers across 18 states and three union territories with significant assets under management.
Pros
- • As a leading NBFC focused on micro-scale MSMEs, the company has demonstrated strong growth, with Assets Under Management (AUM) growing at a CAGR of 42.60% from ₹2,721.55 Crores in FY23 to ₹5,533.90 Crores in FY25, and reaching ₹6,027.62 Crores as of September 30, 2025.
- • The company maintains a well-diversified geographical presence, being the most diversified among its peers, with its top 5 states contributing 57.00% to AUM and no single state accounting for more than 15.77% as of September 30, 2025, which mitigates concentration risk.
- • Aye Finance utilizes a unique 'business cluster' based underwriting methodology for over 70 business clusters, enhanced by data science models, allowing it to effectively assess and lend to MSMEs with limited documentation, a key competitive advantage.
Cons
- • Asset quality is a growing concern as the company's Gross NPA ratio has steadily increased from 2.49% as of March 31, 2023, to 4.21% in FY25, and further to 4.85% as of September 30, 2025, indicating a rising risk of non-payment from its borrowers.
- • The company has a significant exposure to higher-risk unsecured loans, which constituted 37.97% of its total AUM, or ₹22,888.82 Crores, as of September 30, 2025, posing a greater risk of recovery in case of default compared to its secured portfolio.
- • The company has consistently generated negative cash flows from operating activities, which worsened from ₹(720.39) Crores in FY23 to ₹(811.78) Crores in FY25, indicating a heavy reliance on financing activities to sustain its operations and loan disbursements.
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