Aye Finance IPO: Rs 1,010 Crore Issue Opens February 9

Introduction to Aye Finance's Public Offering

Gurgaon-based non-banking finance company (NBFC) Aye Finance is set to launch its Initial Public Offering (IPO) on February 9, 2026. The company, which focuses on providing loans to micro, small, and medium enterprises (MSMEs), successfully raised Rs 454.5 crore from anchor investors on February 6, signaling strong institutional interest ahead of its public debut. The IPO aims to raise a total of Rs 1,010 crore and will close for subscription on February 11, 2026.

Strong Anchor Investor Participation

Aye Finance finalized the allocation of 3.52 crore equity shares to 19 anchor investors at the upper price band of Rs 129 per share. The anchor book saw participation from prominent domestic and international institutions. Nippon Life India and Goldman Sachs Funds emerged as the largest investors, each contributing Rs 74 crore. Other notable global names included Bay Pond, Ithan Creek Master Investors, Societe Generale, Ashoka India Equity Investment Trust, and BNP Paribas Financial Markets. Domestic participation was also robust, with firms like Abakkus, HDFC Life Insurance, 360 ONE, Bank of India MF, and Neo Prime Fund taking part. Of the total anchor allocation, 76.74 lakh equity shares were allotted to two domestic mutual funds through four different schemes.

IPO Structure and Key Dates

The Rs 1,010 crore public issue is a combination of a fresh issue of shares worth Rs 710 crore and an Offer for Sale (OFS) of Rs 300 crore by existing shareholders. The price band for the issue has been fixed at Rs 122 to Rs 129 per equity share. At the upper end of this band, Aye Finance is valued at approximately Rs 3,184 crore. The IPO timeline is set with the share allotment expected to be finalized by February 12, and the company's shares are scheduled to be listed on both the BSE and NSE on February 16, 2026.

Utilization of IPO Proceeds

The primary objective of the fresh issue is to augment the company's capital base. Aye Finance plans to utilize the net proceeds of Rs 710 crore to meet its future capital requirements, which are expected to arise from the growth of its business operations and the expansion of its asset portfolio. This capital infusion will strengthen its balance sheet and support its lending activities to the MSME sector.

Company Profile and Business Operations

Founded in 2014, Aye Finance has established itself as a key lender to micro-scale MSMEs. The company offers a range of loan products, including working capital and business expansion loans, secured against assets or property. It serves a diverse customer base across manufacturing, trading, service, and allied agricultural sectors. A key aspect of its business model is the use of an AI-powered, cluster-based credit assessment methodology, which allows it to evaluate risk effectively, even for businesses that lack traditional financial documentation. As of September 30, 2025, the company had an active customer base of 5.86 lakh across 18 states and three Union Territories.

Financial Performance and AUM

Aye Finance has demonstrated significant growth in its operations. As of September 2025, its Assets Under Management (AUM) stood at Rs 6,027.62 crore. For the first half of the financial year 2025-26 (H1 FY26), the company reported operating revenue of Rs 843.5 crore, a 21.8% increase from Rs 692.2 crore in the same period of the previous year. However, its net profit for H1 FY26 declined to Rs 64.6 crore from Rs 106.8 crore in H1 FY25. For the full financial year ended March 2025, the company had reported a profit of Rs 175.3 crore on a net interest income of Rs 858 crore.

Key IPO Details at a Glance

Investor Allocation and Lot Size

The IPO has a structured allocation for different investor categories. 75% of the net offer is reserved for Qualified Institutional Buyers (QIBs), 15% is allocated to Non-Institutional Investors (NIIs), and the remaining 10% is reserved for Retail Individual Investors. Retail investors can apply for a minimum of one lot, which consists of 116 shares, translating to a minimum investment of Rs 14,964 at the upper price band.

Conclusion

Aye Finance's IPO presents an opportunity for investors to participate in the growth story of a specialized NBFC focused on the underserved MSME sector. The strong backing from anchor investors provides a positive signal about institutional confidence in the company's business model and growth prospects. The funds raised will be crucial for scaling its operations and strengthening its market position. The public subscription period from February 9 to February 11 will determine the final outcome of this significant public issue.