The Indian IPO market in 2026 continues to attract strong investor interest, especially in the NBFC and MSME lending segment. One of the upcoming public issues drawing attention is the Aye Finance IPO, which is set to hit the primary market in February 2026.
This article gives a complete breakdown of the IPO structure, timeline, valuation metrics, financial performance, and investor considerations in a simple and research-backed format. Aye Finance IPO DRHP for detailed Information.
If you are new to IPO investing or stock markets, you should first understand the core concepts of equity markets. You can read our detailed guide Stock Market Basics: An Evergreen Beginner’s Guide to Investing to build a strong foundation before applying for any IPO.
Aye Finance IPO – Key Highlights
| Particular | Details |
|---|---|
| IPO Type | Book Building Issue |
| Total Issue Size | ₹1,010 Crore |
| Fresh Issue | ₹710 Crore |
| Offer For Sale | ₹300 Crore |
| Listing Exchange | BSE, NSE |
| Price Band | ₹122 – ₹129 |
| Face Value | ₹2 Per Share |
| Lot Size | 116 Shares |
| Market Cap (Pre-IPO) | ₹3,183.52 Crore |
IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | 9 Feb 2026 |
| IPO Closes | 11 Feb 2026 |
| Allotment Expected | 12 Feb 2026 |
| Refund Initiation | 13 Feb 2026 |
| Shares Credit | 13 Feb 2026 |
| Tentative Listing | 16 Feb 2026 |
Issue Structure
| Component | Shares | Amount |
|---|---|---|
| Fresh Issue | 5,50,38,759 | ₹710 Cr |
| Offer For Sale | 2,32,55,813 | ₹300 Cr |
| Total Shares | 7,82,94,572 | ₹1,010 Cr |
Investor Reservation
| Category | Allocation |
|---|---|
| QIB | 75% |
| Anchor Investors | 45.60% |
| QIB (Ex Anchor) | 29.40% |
| NII / HNI | 15% |
| Retail Investors | 10% |
IPO Lot Size & Investment Amount
| Category | Lots | Shares | Investment (Upper Price) |
|---|---|---|---|
| Retail Minimum | 1 | 116 | ₹14,964 |
| Retail Maximum | 13 | 1,508 | ₹1,94,532 |
| Small HNI Minimum | 14 | 1,624 | ₹2,09,496 |
| Small HNI Maximum | 66 | 7,656 | ₹9,87,624 |
| Big HNI Minimum | 67 | 7,772 | ₹10,02,588 |
About Aye Finance Limited
Aye Finance Limited is a Non-Banking Financial Company (NBFC) that focuses primarily on lending to micro and small enterprises across India. The company specializes in providing both secured and unsecured loans aimed at supporting working capital needs and business expansion.
Business Segments Covered
- MSME Lending
- Mortgage-backed Loans
- Property-based “Saral” Loans
- Hypothecation-based Lending
- Agriculture Allied Sector Lending
Operational Presence
- Active Customers: 5,86,825+
- Coverage: 18 States + 3 Union Territories
The company mainly serves small manufacturing units, traders, service businesses, and rural micro-entrepreneurs.
Company Financial Performance (₹ Crore)
| Period | Assets | Total Income | PAT | Net Worth |
|---|---|---|---|---|
| Sep 2025 | 7,116.01 | 863.02 | 64.60 | 1,727.37 |
| Mar 2025 | 6,338.63 | 1,504.99 | 175.25 | 1,658.87 |
| Sep 2024 | 5,819.05 | 717.05 | 107.80 | 1,593.17 |
| Mar 2024 | 4,869.59 | 1,071.75 | 171.68 | 1,232.65 |
| Mar 2023 | 3,126.00 | 643.34 | 39.87 | 754.49 |
Key Observation
- Assets growth shows strong loan book expansion
- Net worth improving steadily
- Profit trend slightly volatile but overall positive growth trajectory
Borrowings & Reserves Trend
| Period | Borrowings | Reserves |
|---|---|---|
| Sep 2025 | 5,218.50 | 1,689.58 |
| Mar 2025 | 4,526.33 | 1,621.08 |
| Sep 2024 | 4,083.10 | 1,555.39 |
| Mar 2024 | 3,498.99 | 1,192.72 |
| Mar 2023 | 2,296.16 | 724.04 |
Key Financial Ratios
| KPI | Sep 2025 | Mar 2025 |
|---|---|---|
| ROE | 7.63% | 12.12% |
| Debt / Equity | 3.02 | 2.73 |
| RoNW | 3.82% | 12.12% |
| Price to Book | 1.45 | 1.71 |
Valuation Metrics
| Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS | ₹9.14 | ₹5.24 |
| P/E Ratio | 14.11x | 24.64x |
Strengths of Aye Finance IPO
✔ Strong MSME Lending Demand in India
✔ Large Customer Base Across Multiple States
✔ Secured + Unsecured Lending Mix
✔ Growing Asset Book
✔ Experienced NBFC Operations Since 1993
Risk Factors to Consider
⚠ High Debt Levels (Common in NBFC Sector)
⚠ MSME Loan Default Risk in Economic Slowdown
⚠ Profit Volatility Seen in Past Periods
⚠ Interest Rate Sensitivity
IPO Lead Managers & Registrar
| Role | Company |
|---|---|
| Book Running Lead Manager | Axis Capital Ltd |
| Registrar | KFin Technologies Ltd |
Investor Perspective (Neutral Analytical View)
From a sector perspective, MSME lending remains a high-growth opportunity in India due to low formal credit penetration. Companies with strong collection systems and localized distribution networks usually perform better in this space.
However, valuation expansion post listing and debt-heavy balance sheet structure are factors investors should evaluate carefully before investing.
Final Verdict
The Aye Finance IPO offers exposure to India’s growing MSME credit ecosystem. The company shows scale expansion and improving financial base, but investors should balance growth potential with sector risks typical to NBFC businesses.
Long-term investors should study:
- Loan book quality
- GNPA trends (if disclosed later)
- Cost of funds movement
- Post listing valuation comfort
Disclaimer
This article is for educational and informational purposes only. It is not investment advice. Investors should consult their financial advisor before making any investment decision.