Aye Finance IPO 2026: ₹1,010 Cr Issue, Dates, Price Band & Key Risks

Aye Finance Ltd, an NBFC focused on lending to micro, small and medium enterprises (MSMEs), is set to hit the public markets with a major IPO scheduled later this month, offering investors a look into India’s expanding credit space.

IPO Size & Pricing

• The IPO is worth ₹1,010 crore, making it one of the larger offerings this year.
• It comprises:
  • A fresh issue of ~5.5 crore equity shares valued at around ₹710 crore, and
  • An offer for sale (OFS) of ~2.33 crore shares aggregating ₹300 crore by existing shareholders.
• The price band is fixed at ₹122 to ₹129 per share.
• Each share has a face value of ₹2.

Subscription Timeline

• IPO opens for public subscription: 9 February 2026.
• IPO closes: 11 February 2026.
• Anchor book opens: 6 February 2026 ahead of the public offer.
• Basis of allotment expected: 12 February 2026.
• Shares credited to demat accounts: 13 February 2026.
• Tentative listing on BSE & NSE: 16 February 2026.

Lot Size & Minimum Investment

• One lot: 116 equity shares.
• At the upper end of the band (₹129), a retail investor would need a minimum investment of ~₹14,964 for one lot.
• Non-institutional (NII) investors must bid for at least 14 lots (~₹2.09 lakh), and high-value NIIs for 67 lots (~₹10.02 lakh).

Allotment & Allocation

• Qualified Institutional Buyers (QIBs): Reserved 75% of the net issue.
• Non-Institutional Investors (NIIs): Up to 15%.
• Retail Investors: Up to 10%.

Use of Proceeds
According to the company’s Red Herring Prospectus (RHP), the net proceeds from the fresh issue will be used to:

• Augment the company’s capital base to support future business and asset growth.
• Meet expenses related to the IPO, such as listing and management fees.

Business & Market Position
Aye Finance operates as a non-banking financial company (NBFC) providing small-ticket business loans to underserved MSMEs, secured by hypothecation of business assets or property across sectors like manufacturing, trading, services and allied agriculture. As of 30 September 2025, it served ~5.9 lakh active customers across 18 states and three union territories, with assets under management (AUM) of ~₹6,027.6 crore.

Major Risks to Watch
Investors should be aware of certain risks highlighted in disclosures:

• High exposure to unsecured loans, which historically carry greater default risk.
• Rising Gross NPA (non-performing assets) — from around 2.49% in FY 2023 to ~4.85% by September 30, 2025 — indicating increasing asset quality challenges.
• The company has experienced net operating cash-flow deficits, implying reliance on external financing for operations.
• Asset-liability mismatches and employee attrition could pose operational and financial pressure.

Summary
The Aye Finance IPO presents a major opportunity in India’s burgeoning MSME credit segment. With a substantial ₹1,010 crore issue, defined timelines from 9 February to 11 February 2026, and a price band of ₹122-₹129, it will attract wide investor attention. However, potential applicants should factor in the credit risk profile and sector dynamics before investing.