The Aye Finance IPO has investors buzzing even days after its quiet market entry. This NBFC specializing in small-ticket loans for India’s MSMEs listed flat at ₹129 on February 16, 2026—matching the upper price band exactly. With final subscription at 0.97x and negative GMP, the Aye Finance IPO didn’t deliver listing pops, but its MSME credit story demands a closer look. As your market advisor, I’ve packed this Aye Finance IPO review with data tables and chart-ready visuals to cut through the post-listing haze.
Decoding Aye Finance: MSME Lending Powerhouse
Aye Finance targets the ₹20 lakh crore MSME credit gap, serving 60 million+ small businesses contributing 30% to GDP. Founded 2014 by CEO Sanjay Sharma (ex-HDFC), backed by CapitalG and Alpha Wave, it offers ₹50k-₹10 lakh secured/unsecured loans via 398 branches across 22 states.
Business Model Snapshot
Revenue Source | % Contribution | Competitive Edge |
|---|---|---|
Interest Income | 95%+ | Phygital (AI + branches) |
Fees | Balance | Low NNPA 1.4% |
AUM | ₹4,980 Cr | 12% YoY growth |
Growth levers: Rural expansion, supply chain/green loans amid RBI’s formalization push (UPI/ONDC).
Aye Finance IPO: Structure & Timeline Breakdown
The Aye Finance IPO raised ₹1,010 Cr (Feb 9-11): ₹710 Cr fresh issue (lending capital) + ₹300 Cr OFS (Alpha Wave/CapitalG exits). Lot size: 116 shares (~₹15k min). Post-issue mcap: ₹3,183 Cr.
Aye Finance IPO Components
Component | Amount (₹ Cr) | Purpose for Investors |
|---|---|---|
Fresh Issue | 710 | Scale lending (Tier I) |
Offer for Sale | 300 | Backer liquidity |
Total | 1,010 | Standard allocation |
Key Dates Timeline
Event | Date |
|---|---|
Issue Open/Close | Feb 9-11 |
Allotment Status | Feb 12 |
Shares Credited | Feb 13 |
Listing BSE/NSE | Feb 16 @₹129 |
Leads: Axis Capital, IIFL, JM Financial, Nuvama. Anchors: ₹454 Cr raised.
MSME Sector Opportunity: Visualized Positioning
NBFC-ML AUM grows 20-25% YoY; Aye Finance IPO taps rural underserved (55% secured loans).
Peer Landscape Table
Credit Gap Context: ₹20L Cr unmet demand fuels long-term tailwinds.
Financial Performance: Growth with Red Flags
Aye Finance IPO financials show revenue jump: ₹1,066-1,460 Cr (FY24) → ₹1,501 Cr (FY25). PAT steady at ₹171 Cr (+6%).
Revenue & Profit Growth
Key Ratios Comparison
Metric | Aye FY25 | Peer Avg | Investor Signal |
|---|---|---|---|
RONW | 12.1% | 11% | Solid |
ROCE | 10.5% | 9% | Efficient |
NNPA | 1.4% | 1.5% | PCR 67.56% |
GNPA | Higher | 2% | Watch |
Strength: Ops cash positive. Concern: GNPA trails peers—MSME cyclicality.
Aye Finance IPO Valuation: Discounted vs Peers
Upper band ₹129: P/E 24.6x, P/B 1.3x, EV/EBITDA 8.2x. CEO: “Priced below peers for upside.”
Valuation Matrix
Company | P/E (x) | P/B (x) | RONW (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
Aye Finance | 24.6 | 1.3 | 12.1 | 3,183 |
SBFC Finance | 33.9 | 2.5 | 11.6 | Larger |
Five-Star | 14.6 | 2.0 | 8.7 | Larger |
Verdict: Fair discount justifies NPA premium while capturing growth.
Subscription Story: Muted Demand Confirmed
Aye Finance IPO closed 0.97x overall. GMP -₹2 predicted flat listing—nailed it.
Final Subscription
Category | Times Subscribed (x) |
|---|---|
QIB | 1.50 |
NII | 0.05 |
Retail | 0.76 |
Total | 0.97 |
Retail showed up; HNIs ghosted. Anchors signaled conviction amid caution.
Risk Dashboard:
Aye Finance IPO risks quantified:
Risk Category | Severity | Key Concern |
|---|---|---|
Business | High | MSME slowdown NPAs |
Financial | Medium | GNPA > peers |
Regulatory | Medium | Unsecured curbs |
Execution | Medium | Rural collections |
Market | Medium | Flat listing timing |
Investment Roadmap: Who, When, How Much
Investor Fit Matrix
Short-term: Skip. Long-term (3-5 yrs): 20%+ AUM potential shines.
Final Take: Aye Finance IPO Long-Term Winner
The Aye Finance IPO delivered no fireworks but charts a steady MSME growth path. Neutral verdict: Accumulate dips for patient investors; avoid short-term plays. Valuation discount + sector tailwinds outweigh NPA risks over time. Track Q3FY26 asset quality—Aye Finance IPO rewards table-readers who bet on India’s small business boom.
