In February 2026, investor interest in financial services IPOs continued to remain strong, particularly for lenders focused on under served segments such as micro enterprises and small businesses. As credit access expands across India’s MSME ecosystem, NBFCs with large distribution reach, diversified sourcing, and scalable underwriting models have remained in focus for investors tracking long term growth themes.
Against this backdrop, Aye Finance Limited is set to open its IPO on February 9, 2026. Here is a detailed insight into Aye Finance Limited, its IPO, and the industry outlook.
About Aye Finance Ltd.
Incorporated in 1993, Aye Finance Limited is an NBFC that offers secured and unsecured small business loans for working capital. Its offerings include mortgage loans, Saral property loans, and secured and unsecured hypothecation loans, primarily targeted at micro scale MSMEs.
The company provides business loans for expansion needs, often secured by working assets or property. It caters to customers operating in manufacturing, trading, service, and allied agriculture sectors. Aye Finance serves 586,825 active customers across 18 states and three union territories and has reported significant assets under management.
Product Offerings
• Mortgage Loans
• Saral Property Loans
• Secured Hypothecation Loans
• Unsecured Hypothecation Loans
In the six months ended September 30, 2025 and September 30, 2024, and in fiscal years 2025, 2024, and 2023, the company had 10,459, 8,388, 9,102, 6,825, and 5,724 full time employees, respectively, engaged in operations in India.
Competitive Strengths
• Leading lender of small ticket loans to micro scale MSMEs with comprehensive product offerings and focus on serving a large and unaddressed total addressable market
• Strong sourcing capabilities supported by a diversified pan India presence and high customer retention
• Effective underwriting methodology
• Robust multi tiered collection capabilities
• Building resilience through technological capability
• Access to a diversified lender base and cost effective financing
• Experienced and professional management team supported by marquee investors and a committed employee base
Aye Finance IPO Details
Aye Finance IPO is a book build issue of ₹1,010.00 crores. The issue is a combination of a fresh issue of 5.50 crore shares aggregating to ₹710.00 crores and an offer for sale of 2.33 crore shares aggregating to ₹300.00 crores.
The IPO price band is set at ₹122 to ₹129 per share. The issue is proposed to be listed on BSE and NSE.
Important IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | February 9, 2026 |
| IPO Close Date | February 11, 2026 |
| Allotment Date (Tentative) | February 12, 2026 |
| Initiation of Refunds | February 13, 2026 |
| Credit of Shares to Demat | February 13, 2026 |
| Listing Date (Tentative) | February 16, 2026 |
Key IPO Details
Here is the table on the Aye Finance IPO Review:
| Particulars | Details |
|---|---|
| Face Value | ₹2 per share |
| Issue Price Band | ₹122 to ₹129 per share |
| Lot Size | 116 shares |
| Total Issue Size | 7,82,94,572 shares aggregating up to ₹1,010.00 crore |
| Fresh Issue | 5,50,38,759 shares aggregating up to ₹710.00 crore |
| Offer for Sale | 2,32,55,813 shares aggregating up to ₹300.00 crore |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Shareholding Pre issue | 19,17,45,507 shares |
| Shareholding Post issue | 24,67,84,266 shares |
| Market Capitalisation Pre IPO | ₹3,183.52 crore |
Lot Size of Aye Finance IPO
Investors can bid for a minimum of 116 shares and in multiples thereafter. The table below outlines bidding amounts based on the upper price band.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 116 | ₹14,964 |
| Retail (Max) | 13 | 1,508 | ₹1,94,532 |
| S HNI (Min) | 14 | 1,624 | ₹2,09,496 |
| S HNI (Max) | 66 | 7,656 | ₹9,87,624 |
| B HNI (Min) | 67 | 7,772 | ₹10,02,588 |
Aye Finance Ltd. Financials
Aye Finance IPO has a pre issue market capitalisation of ₹3,183.52 crore. As of September 30, 2025, key performance indicators show ROE of 7.63 percent and a debt to equity ratio of 3.02. The Return on Net Worth stands at 3.82 percent, and the price to book value is 1.45.
Other financial details of the company include the following:
Key Company Financials
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|---|
| Assets | 7,116.01 | 6,338.63 | 5,819.05 | 4,869.59 | 3,126.00 |
| Total Income | 863.02 | 1,504.99 | 717.05 | 1,071.75 | 643.34 |
| Profit After Tax | 64.60 | 175.25 | 107.80 | 171.68 | 39.87 |
| Net Worth | 1,727.37 | 1,658.87 | 1,593.17 | 1,232.65 | 754.49 |
| Reserves and Surplus | 1,689.58 | 1,621.08 | 1,555.39 | 1,192.72 | 724.04 |
| Total Borrowing | 5,218.50 | 4,526.33 | 4,083.10 | 3,498.99 | 2,296.16 |
Amount in ₹ crore.
Aye Finance Ltd.: Industry Outlook
• MSME credit demand remains a core driver for NBFC growth, especially for lenders offering small ticket loans with structured underwriting
• Secured and unsecured working capital products can see steady demand across manufacturing, trading, and services, depending on economic activity
• Lenders with diversified sourcing, strong collection infrastructure, and disciplined risk controls are generally better positioned across cycles
• Key risks in the segment typically include asset quality sensitivity to business slowdowns, borrower concentration risk, and funding cost fluctuations
Conclusion
Aye Finance Limited presents an IPO opportunity for investors seeking exposure to an NBFC focused on micro scale MSMEs. The company offers secured and unsecured working capital loans and has a wide customer base across multiple states and union territories. The IPO includes a fresh issue for capital augmentation along with an offer for sale, which together make up the total issue size.
However, investors should consider factors such as profitability trends, leverage levels, and sensitivity of MSME lending to macro conditions. Reviewing the offer documents carefully and aligning the investment with individual risk appetite remains essential before participating in the IPO.
