Aye Finance Limited’s upcoming ₹1,010 crore IPO launch from February 9 to February 11, 2026, creates a buzz in the gray market. The book-building issue combines a fresh issue of 5.50 crore shares worth ₹710 crores and an offer for sale of 2.33 crore shares valued at ₹300 crores. Retail investors must invest a minimum of ₹14,964 for the standard lot size of 116 shares, with the price band set between ₹122 and ₹129 per share.
The IPO gray market premium shows measured optimism among investors. Early February 2026 numbers reveal a gray market premium between ₹1 and ₹5. This points to an expected listing price of ₹130-₹134 when the shares debut on February 16, 2026 [-5]. The modest gray market price comes despite Aye Finance’s strong financial performance, with revenue jumping 40.42% from ₹1,071.75 crores in March 2024 to ₹1,504.99 crores in March 2025. Still, investors should consider the increase in Gross NPA from 2.5% in FY23 to 4.9% in H1 FY26.
Aye Finance launches ₹1,010 Cr IPO with fresh issue and OFS
Aye Finance plans to raise ₹1,010 crore through its public offering. This move represents a key milestone as the non-banking lender steps into capital markets. The mainboard IPO combines a fresh issue worth ₹710 crore through 5.50 crore shares and existing shareholders will sell 2.33 crore shares valued at ₹300 crore. Investors can participate in the company’s growth story as the NBFC lists on both BSE and NSE.For a deeper understanding of the business structure, operations, and financial background, readers can explore aye-finance-company.
IPO opens on Feb 9 and closes on Feb 11, 2026
Investors can bid for Aye Finance shares over three days from Monday, February 9 until Wednesday, February 11, 2026. The company will finalize share allotment on Thursday, February 12. Investors should receive their refunds and shares in demat accounts by Friday, February 13. The shares are expected to start trading on Monday, February 16, 2026.Eligible investors can Apply Now during the IPO window.
The IPO allocation follows a structured approach. Qualified institutional buyers will get 75% of the shares, while non-institutional investors can access 15%. Retail investors have a 10% share in the public issue.
Price band set at ₹122–₹129 per share
The company has set its IPO price between ₹122 and ₹129 per share. At ₹129 per share, Aye Finance’s value stands at approximately ₹3,184 crore. Each share has a face value of ₹2.
Market indicators point to an expected listing price of ₹134, suggesting a potential 3.88% premium based on current ipo gray market premium today. Early investors seem cautiously optimistic about the IPO’s prospects.
Lot size fixed at 116 shares for retail investors
Retail investors must buy at least 116 shares to participate. This means investing ₹14,964 at the upper price of ₹129 per share. The standardized lot size helps smaller investors participate meaningfully.
Different investor categories have their own minimum requirements. Small non-institutional investors need to apply for 14 lots (1,624 shares), investing ₹209,496. Big non-institutional investors must buy at least 67 lots (7,772 shares), totaling ₹1,002,588.
Retail investors can apply for up to 13 lots. This equals 1,508 shares and requires about ₹184,000.
Anchor investors participate on Feb 6
Aye Finance will allocate shares to anchor investors on Friday, February 6, 2026. This pre-IPO placement with institutional investors helps build market confidence.
Anchor investors, typically established financial institutions and funds, commit to holding their shares for a set period. Their participation and agreed price often shape the ipo gray market premium and retail investor sentiment.
Investment banks are managing the IPO, with listing planned on both major Indian exchanges. Current ipo gray market gmp indicators suggest reasonable valuation, though some investors remain cautious due to market conditions and sector-specific factors.
Company highlights strong MSME lending model in RHP
Aye Finance’s Red Herring Prospectus (RHP) highlights its specialized lending model. The company targets underserved micro-enterprises, which might explain the cautious yet positive ipo gray market premium today. Investors need to learn about the company’s core business strengths as they review this offering against ipo gray market price indicators.
Focus on micro-scale MSMEs with secured and unsecured loans
Aye Finance is a 10-year-old leader in small-ticket loans to micro-scale MSMEs. They serve businesses with annual turnover between ₹10 lakh and ₹1 crore. Their portfolio has both secured and unsecured financing options. These are custom-made for micro-enterprises that regular banks often ignore.
The lender’s products consist of hypothecation loans (83.3% of AUM), mortgage loans (14.7%), and quasi-mortgage loans (2%) as of March 2025. The company takes a conservative approach by marking 57.3% of its portfolio as secured. This includes mortgage and hypothecation of underlying inventory and receivables. The remaining 42.7% is marked as unsecured.
These financial solutions average around ₹1.25 lakh per loan. They help businesses with working capital needs and expansion across manufacturing, trading, dairy (livestock), and service segments. The portfolio spreads across trading (50.7%), livestock rearing (29.1%), manufacturing (10.7%), services (7.6%), and job work (1.9%) as of March 2025.
Cluster-based underwriting and cash flow analysis
Aye Finance stands out with its proprietary “cluster-based credit assessment” method. This approach tackles the challenge of thin-file documentation and missing credit history among micro-entrepreneurs. The company has fine-tuned this competitive edge over the last several years.
The company doesn’t just rely on traditional documentation. They review creditworthiness based on business cash flows and margins. This happens through specific understanding of “business clusters” using observable data points. So far, they’ve given customized business loans worth over ₹5,000 crores to more than 350,000 customers.
The company runs a “phygital” business model that blends digital technology with physical presence. They use a paperless system with analytics and monitoring tools that capture micro enterprises’ cash flows digitally. This smart risk selection method combines AI/ML algorithms and analytical scorecards. It makes credit available to businesses that couldn’t access formal lending before.
Pan-India presence across 18 states and 3 UTs
Aye Finance has grown into a major player with 568 branches across 18 states and 3 union territories in India. Their network now serves 586,825 active unique customers as of September 2025.
The company’s assets under management (AUM) jumped by a lot from ₹2,721.55 crore in March 2023 to ₹6,027.62 crore by September 2025. Their disbursements rose from ₹2,357.09 crore in FY23 to ₹4,291.33 crore in FY25.
The portfolio shows strong geographic spread. The top three states—Bihar (15%), Uttar Pradesh (14.7%), and Rajasthan (11.7%)—make up 41.4% of total exposure. The rest spreads across other regions. This wide reach makes Aye the only scaled, pan-India player offering unsecured small-ticket business loans to micro-enterprises.
Use of SwitchPe platform for supply chain finance
The RHP highlights Aye Finance’s SwitchPe platform. This credit-backed payment solution helps merchants manage their working capital better. The platform provides uninterrupted connectivity to well-priced suppliers and unsecured credit lines. This solves common supply chain issues that small businesses face.
SwitchPe comes with paperless onboarding, zero joining fees, no foreclosure charges, and up to 14 days of interest-free credit. The platform builds on evidence-based learning from over 5 lakh happy merchants and their borrowing history with Aye Finance.
SwitchPe was built to fix everyday small business problems. It offers a complete solution for retail supply chains. The platform works as a digital hyper-local marketplace. Here, merchants can find new distributors and vice versa. This creates extra value for Aye’s existing customers. After starting in select cities, Aye plans to roll out SwitchPe across 22 states where they have a strong presence.
Aye Finance reports robust growth in AUM and customer base
Financial indicators show Aye Finance’s impressive growth as the company gets ready for its market debut. The current IPO gray market sentiment looks promising. Investors are watching these metrics closely to assess the IPO gray market premium today.
AUM grew from ₹2,721 Cr (FY23) to ₹6,027 Cr (H1 FY26)
Aye Finance showed remarkable asset growth in recent years. The Assets Under Management (AUM) expanded from ₹2,721.55 crore in March 2023 to ₹6,027.62 crore by September 2025. This growth represents a reliable CAGR of 42.60% from FY23 through FY25. The company’s momentum stayed strong as AUM reached about ₹4,300 crore by March 2024 and climbed to ₹5,525 crore by March 2025.
The lender’s disbursements also jumped significantly. They rose from ₹2,357.09 crore in FY23 to ₹4,291.33 crore in FY25. This growth lines up with what management predicted earlier about crossing the ₹6,000 crore AUM mark in FY26. Such steady growth has drawn attention in the IPO gray market, where premiums often reflect how confident investors feel about a company’s potential.
Customer base doubled to 5.8 lakh+ in 2 years
Aye Finance’s customer base grew alongside its financial success. The number of active unique customers jumped from 305,524 in March 2023 to 586,825 by September 2025. The customer base doubled in just two and a half years. This rapid growth shows the company’s strong presence in the MSME segment.
The company serves its growing customer base through 568 branches across 18 states and three union territories. This network gives them a true pan-India presence. The company’s workforce grew too. They had 8,388 full-time employees by September 2024, which grew to 10,459 by September 2025. This suggests a major expansion to support their growing customer base.
Revenue and PAT trends from FY23 to FY25
Aye Finance’s revenue showed consistent strong growth. Total income climbed from ₹643.34 crore in FY23 to ₹1,071.75 crore in FY24, then reached ₹1,504.99 crore in FY25. The first half of FY26 brought in ₹863.02 crore. This impressive growth could boost the IPO gray market premium as listing nears.
The Profit After Tax (PAT) saw dramatic improvements. It soared from ₹39.87 crore in FY23 to ₹171.68 crore in FY24—a 330% jump. PAT then settled at ₹175.25 crore in FY25, growing by about 2%. The company earned a PAT of ₹64.60 crore in the six months ended September 2025.
Net Interest Income (NII) also trended upward. It grew from ₹368.52 crore in FY23 to ₹622.15 crore in FY24 and reached ₹857.96 crore in FY25, achieving a CAGR of about 52.56%.
Net worth and borrowing metrics
The company’s balance sheet looks increasingly strong. Net worth grew from ₹754.49 crore in FY23 to ₹1,232.65 crore in FY24, then reached ₹1,658.87 crore in FY25. By September 2025, the company’s net worth stood at ₹1,727.37 crore. This stronger capital base helped fuel their growth plans.
Total borrowings grew accordingly. They rose from ₹2,296.16 crore in FY23 to ₹3,498.99 crore in FY24 and ₹4,526.33 crore in FY25, reaching ₹5,218.50 crore by September 2025. The Debt-to-Equity ratio stayed manageable at 3.02 as of September 2025, compared to 2.73 in March 2025.
Return on Equity (ROE) numbers varied over time. They improved from 5.46% in FY23 to 17.28% in FY24, before settling at 12.12% in FY25. These financial basics could play a key role as investors assess the IPO gray market price before the public offering.
RHP flags rising NPAs and unsecured loan exposure as key risks
Aye Finance’s Red Herring Prospectus (RHP) explains several risk factors that investors should think over before entering the IPO gray market, despite its impressive growth metrics. The company’s modest IPO gray market premium today could in part reflect these concerns as it moves toward public offering.
Gross NPA rose from 2.49% to 4.21% in 2 years
The steady decline in Aye Finance’s asset quality should worry investors who track the IPO gray market price. The gross non-performing assets (NPA) ratio has steadily risen from 2.49% as of March 31, 2023 to 4.21% as of March 31, 2025. This trend continued into the current fiscal year, reaching 4.85% by September 30, 2025. The company’s pre-provisioning operating profit-to-credit cost ratio fell to 1.78x in FY25 from better levels of 2.7x in FY24 and 1.97x in FY23. The overall average collection efficiency also dropped to about 95% in FY25 from 98% in FY24.
Unsecured loans form ~38% of AUM
Much of Aye Finance’s portfolio consists of unsecured exposure. Unsecured loans made up 37.97% of total assets under management by September 2025. This number has changed over the years—41.47% (September 2024), 39.68% (FY25), 37.91% (FY24), and 30.26% (FY23). The unsecured segment brings higher credit risk, with the RHP noting a higher GNPA of 5.70%. First-time formal borrowers make up 37.17% of total advances as of September 30, 2025, which could lead to more defaults.
Negative cash flows from operations in past years
The RHP states that Aye Finance “has experienced negative cash flows from operating activities in the past”. This pattern raises questions about sustainability, particularly if economic conditions worsen. The company focuses on micro-enterprises with limited or informal financial records, which increases the chances of borrower defaults and could affect future cash flows negatively.
Dependence on third-party data for underwriting
Aye Finance heavily relies on “the accuracy and completeness of information provided by customers and certain third-party service providers”. Wrong, incomplete, or misleading information could hurt the assessment of borrower creditworthiness, collateral valuation, and title verification. This creates a weakness, especially since the company’s “cluster-based” underwriting approach needs reliable data.
These risk factors challenge the growth story and could affect the new IPO gray market premium as investors balance opportunities with risks. The careful IPO gray market GMP might reflect these concerns along with broader market views about NBFCs serving the MSME sector.
IPO gray market premium today shows cautious optimism
The gray market for Aye Finance IPO shows cautious optimism among early investors. The IPO gray market premium helps us understand how the stock might perform when it lists.
GMP stands at ₹1–₹5, suggesting 0.78% to 3.88% premium
The IPO gray market premium today for Aye Finance shares is around ₹1. This small premium means investors might see gains of about 0.78% above the upper price band of ₹129. The premium has moved between ₹0 and ₹5 lately. Some sources reported a premium of ₹5 on February 4, which could mean gains of 3.88%.
The current GMP shows balanced investor interest. Investors seem neither too excited nor too worried about the offering. The company’s 15-year old business model and growth story suggest this careful gray market price reflects both its strengths and risks.
Estimated listing price around ₹130
The expected listing price for Aye Finance shares is close to ₹130. This number comes from adding the current GMP to the issue’s upper price band of ₹129. Market watchers sometimes predicted higher prices up to ₹134 when the GMP briefly reached ₹5.
GMP trends in the last week
Aye Finance’s new IPO gray market premium has been quite volatile lately. The GMP started at zero (₹0) on February 2-3, then jumped to ₹5 on February 4. The premium then dropped to ₹1 and stayed there from February 5 through February 6.
This quick drop from ₹5 to ₹1 is a big deal as it means that investors are paying attention to the risk factors in the company’s RHP, especially the rising NPAs and high unsecured loan exposure.
Disclaimer on gray market trading
The IPO gray market GMP numbers are not official and come from speculation. This market operates without any regulation and outside the control of stock exchanges and SEBI.
These GMP values can change dramatically before the actual listing date. Making investment decisions based only on gray market premiums is risky. Financial experts always say you should do your research or talk to qualified professionals before using gray market indicators to make investment choices.
What is Aye Finance and who are its key investors?
Market watchers closely track the predicted IPO gray market activity of a financial institution that has come a long way. A look at Aye Finance’s background and investors helps explain current IPO gray market premium trends as investors review this upcoming listing.
Founded in 1993, headquartered in Gurugram
Aye Finance started its journey in 1993 and set up its headquarters in Gurugram. The company grew into a non-deposit taking NBFC that serves micro and small enterprises (MSEs) in India. The company became active in 2014 and has worked to help underbanked segments through technological breakthroughs.
Backed by CapitalG, LGT Capital, Elevation Capital
Aye Finance has secured major investments from leading global institutions. Elevation Capital V leads with a 16.19% stake, while LGT Capital owns 14.13%. On top of that, CapitalG (Alphabet’s investment arm), Alpha Wave India, and several other international investors have fueled the company’s growth.
No promoter holding; professionally managed
Aye Finance stands out by operating without traditional promoter holding. The company runs under professional management with co-founders Sanjay Sharma (Managing Director & CEO) and Vikram Jetley at the helm. Sanjay Sharma leads strategy and operations with his unmatched banking experience.
Lead managers include Axis, JM Financial, IIFL
Aye Finance picked Axis Capital, IIFL Capital, JM Financial, and Nuvama Wealth Management as book-running lead managers. These institutions oversee the offering that shows modest IPO gray market premium today. This reflects balanced investor sentiment toward this MSME lender.
Conclusion
Aye Finance’s ₹1,010 crore IPO gives investors a great chance to enter the MSME lending space. The company started by serving underbanked micro-enterprises and grew into a pan-India player with over 5.8 lakh customers, which shows its resilient business model. The company’s impressive AUM grew from ₹2,721 crore in FY23 to ₹6,027 crore by H1 FY26, proving its strong market reach.
Investors should weigh these strengths against some key risks. The Gross NPA ratio jumped from 2.49% to 4.85% over two years, raising concerns about asset quality management. The portfolio’s 38% unsecured loan component needs a closer look due to its higher default risk profile.
The gray market shows a modest premium of ₹1-₹5, which balances Aye Finance’s growth story with its challenges. This GMP points to a possible listing price of ₹130-₹134, a premium of about 0.78% to 3.88% over the upper price band.
Retail investors must put in at least 116 shares (₹14,964). They’ll need to evaluate if the company’s innovative cluster-based underwriting model and wide branch network across 18 states make it worth investing. The IPO reserves 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.
Aye Finance ended up at a crucial point as it moves to public markets. Its proprietary credit assessment method and SwitchPe platform give it an edge, but changing ROE metrics and rising NPAs need careful study. Smart investors should look beyond gray market signals and do their homework as the February 16, 2026 listing date gets closer.
Frequently Asked Questions
The IPO price band is ₹122–₹129 per share. The retail lot size is 116 shares, requiring ₹14,964 at the upper band.
AUM increased from ₹2,721 crore in FY23 to ₹6,027 crore by H1 FY26, reflecting strong growth momentum.
Key risks include rising Gross NPAs, high unsecured loan exposure, past negative operating cash flows, and reliance on third-party data.
Major investors include Elevation Capital V, LGT Capital, CapitalG, and Alpha Wave India.
The GMP is around ₹1–₹5, indicating a possible listing price near ₹130–₹134.
Disclaimer: This blog is intended solely for educational and informational purposes and should not be construed as investment advice or a recommendation. While efforts have been made to ensure the accuracy and reliability of the information and data presented, no representation or warranty, express or implied, is made regarding its completeness or correctness. Readers are advised to independently verify all information and consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. Please read all relevant offer documents and disclosures carefully before investing.,
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