Aye Finance IPO Day 3 Highlights: Issue bid 97% on final day, GMP muted

As of 6.03 pm, Aye Finance IPO was booked 97% on the final day. QIB was booked 1.50 times, the NII segment 0.05 times and the retail portion 0.77 times.

Aye Finance IPO Day 3 LIVE: Prior to the IPO, the company raised ₹454.5 crore from anchor investors, including Nippon India Mutual Fund, Bay Pond Partners, Ashoka India Equity Investment Trust, Abakkus Four2Eight Opportunities Fund, Goldman Sachs Funds, HDFC Life Insurance Company and Integrated Core Strategies (Asia).

Aye Finance IPO Day 3 LIVE: The issue includes only a 10% reservation for retail investors. 75% share is reserved for qualified institutional bidders, while non institutional investors have 15% of the allocation in the IPO.

The grey market premium (GMP) for the Aye Finance IPO continued to stay at ₹0 per share, suggesting that the stock is likely to list at its issue price of ₹129.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Aye Finance IPO Day 3 LIVE: The IPO saw a tepid response from investors with an overall subscription of just 0.96 times by 3:40 pm on Day 3. The retail investor segment was subscribed 0.73 times, while the non-institutional investors’ category garnered a mere 0.05 times subscription. The qualified institutional buyers' (QIB) portion was subscribed 1.5 times.

In total, the issue attracted bids for 4.38 crore shares compared to the total offer size of 4.55 crore shares.

Aye Finance IPO Day 3 LIVE: HDFC Securities said investors should closely monitor how Aye Finance’s increasing exposure to mortgage-backed loans affects its profitability and risk profile. The brokerage added that while the IPO offers an opportunity to assess this strategic shift, execution risks and higher credit costs could weigh on the company’s near-term performance.

Aye Finance IPO Day 3 LIVE: Master Capital Services, meanwhile, highlighted the company’s strategic positioning within the MSME lending ecosystem and its focus on small-ticket secured and semi-secured loans catering to underserved borrowers.

"With its focus on small-ticket, secured, and semi-secured business loans, the company caters to underserved micro enterprises that remain largely outside the formal credit ecosystem. Investors may consider the IPO as a potential long-term investment opportunity," said Master Capital Services.

Aye Finance IPO Day 3 LIVE: The grey market premium (GMP) for the Aye Finance IPO was ₹0 per share, suggesting that the stock is likely to list at its issue price of ₹129.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Aye Finance IPO Day 3 LIVE: The IPO saw a tepid response from investors with an overall subscription of just 0.50 times by 1:50 pm on Day 3. The retail investor segment was subscribed 0.66 times, while the non-institutional investors’ category garnered a mere 0.03 times subscription. The qualified institutional buyers' (QIB) portion was subscribed 0.69 times.

In total, the issue attracted bids for 2.29 crore shares compared to the total offer size of 4.55 crore shares.

Aye Finance IPO Day 3 LIVE: As per SBI Securities, the company is shifting towards an asset-backed lending model by increasing mortgage loans, which are larger and have longer tenures. This transition is expected to gradually ease credit costs, which remain elevated at 7% on an annualised basis for 1HFY26. SBI Securities also highlighted that profits declined nearly 40% year-on-year in 1HFY26 due to higher impairment costs, pressure on net interest margins, and rising operating expenses.

"At the upper price band of ₹129, the issue is valued at Adj. P/BV of 2.0x on post-issue capital. We would like to monitor the progress of reduction in credit cost with the company’s mortgage-heavy loan mix strategy. Hence, we recommend investors to AVOID the issue and track the company’s performance post listing," said the brokerage.

Aye Finance IPO Day 3 LIVE: According to its RHP, its listed peers include SBFC Finance Ltd, which trades at a P/E of 27.32, and Five-Star Business Finance Ltd, with a P/E of 12.07.

Aye Finance IPO Day 3 LIVE: In FY25, Aye Finance posted a net profit of ₹175.3 crore, slightly up from ₹171.7 crore in the preceding year, while its net interest income jumped 37.9% to ₹858 crore. As of September 30, 2025, the company had a presence in 18 states and three union territories, catering to approximately 5.9 lakh active customers and managing assets worth ₹6,027.6 crore.

Aye Finance IPO Day 3 LIVE: The grey market premium (GMP) for the Aye Finance IPO was ₹0 per share, suggesting that the stock is likely to list at its issue price of ₹129.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Aye Finance IPO Day 3 LIVE: The IPO saw a tepid response from investors with an overall subscription of just 0.37 times by 12:04 pm on Day 3. The retail investor segment was subscribed 0.60 times, while the non-institutional investors’ category garnered a mere 0.03 times subscription. The qualified institutional buyers' (QIB) portion was subscribed 0.37 times.

In total, the issue attracted bids for 1.68 crore shares compared to the total offer size of 4.55 crore shares.

Aye Finance IPO Day 3 LIVE: The net proceeds from the fresh issue were proposed to be utilised for multiple purposes. These included augmenting the company’s capital base to meet its future capital requirements, as well as enhancing its brand visibility and establishing a public market for its equity shares in India.

The main objects clause and the objects incidental or ancillary thereto, as outlined in the company’s Memorandum of Association, also permitted the company to undertake its existing business activities and the initiatives proposed to be funded through the net proceeds of the offer.

Aye Finance IPO Day 3 LIVE: In terms of shareholding, Elevation Capital owns a 16.03% stake, LGT Capital holds 13.99%, Alphabet through CapitalG has 13.14%, and Alpha Wave India owns 11.1%. British International Investment and A91 Emerging Fund each have stakes exceeding 9%.

Swastika Investmart has given a ‘neutral’ rating to the Aye Finance IPO, saying that fundamentals appear solid, with the company showing consistent revenue and profit growth.

“Company implying a P/E multiple near ~14x based on FY25 earnings is reasonably priced compared with some listed NBFC peers. Overall, the IPO is suitable for long-term investors with a belief in MSME lending growth and moderate NBFC credit risk appetite,” it said.

Aye Finance IPO Day 3 LIVE: Choice Equity Broking, while giving a ‘subscribe for long-term’ rating to the Aye Finance IPO, said that at the upper price band, the issue is priced at a post-issue P/BV of 1.3x, below the peer average. The discount appropriately reflects the company’s elevated GNPAs and credit costs, offering a risk-adjusted entry point for long-term investors.

“On the positive side, the Company has demonstrated strong growth in its top line, with interest income rising 47.9% and AUM increasing 47.4% between FY22 and FY25. While the declining ROE and ROA highlight operational pressures amid industry stress, the recovering NBFC sector and potential tailwinds support a favourable medium- to long-term growth outlook. Considering these near-term operational challenges alongside the growth potential, we assign a “Subscribe For Long Term” rating for this issue,” the firm said.

Aye Finance IPO Day 3 LIVE: The grey market premium (GMP) for the Aye Finance IPO was ₹0 per share, suggesting that the stock is likely to list at its issue price of ₹129.

The GMP represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to note that the GMP is merely an early indicator and should not be relied upon as the sole factor in investment decisions.

Aye Finance IPO Day 3 LIVE: The IPO saw a tepid response from investors with an overall subscription of just 0.17 times by 10:42 am on Day 3. The retail investor segment was subscribed 0.54 times, while the non-institutional investors’ category garnered a mere 0.02 times subscription. The qualified institutional buyers' (QIB) portion was subscribed 0.13 times.

In total, the issue attracted bids for 79.63 lakh shares compared to the total offer size of 4.55 crore shares.

Aye Finance IPO Day 2 LIVE: The ₹1,010 crore issue comprises a fresh issue of 5.50 crore equity shares aggregating ₹710 crore, along with an offer for sale of 2.33 crore shares worth ₹300 crore by existing shareholders.