Aye Finance IPO Day 1: Issue booked 12% so far. Check GMP, review, subscription status. Should you apply or skip?

The Aye Finance IPO subscription period is scheduled to commence on Monday, February 9, and will end on Wednesday, February 11. Aye Finance IPO price band has been set between ₹122 and ₹129 per equity share, with a face value of ₹2. Aye Finance on Friday, February 6 garnered ₹454.5 crore from anchor investors, ahead of its initial share sale opening for public subscription.

Founded in 1993, Aye Finance Limited is a non-banking financial company (NBFC) that offers both secured and unsecured small business loans targeting working capital needs, including mortgage loans and 'Saral' Property Loans, as well as hypothecation loans, primarily aimed at micro-scale MSMEs.

The firm offers business loans aimed at facilitating business growth, secured by working assets or property, to clients in sectors such as manufacturing, trading, services, and related agriculture.

As per the company's red herring prospectus (RHP), the company's listed peers include SBFC Finance Ltd (with a P/E of 27.32), and Five-Star Business Finance Ltd (with a P/E of 12.07).

For the fiscal year ending in March 2025, Aye Finance achieved a profit of ₹175.3 crore, showing a slight increase from ₹171.7 crore the previous year.

Net interest income experienced a significant rise of 37.9%, reaching ₹858 crore, up from ₹622.2 crore.

As of September 2025, the company served 5.86 lakh unique active customers and managed assets amounting to ₹6,027.6 crore, indicating its growing presence in the lending sector.

Aye Finance IPO GMP today

Aye Finance IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹129 with no premium or discount in the grey market according to investorgain.com.

Following the grey market activities over the past week, today's IPO GMP is trending downward and is anticipated to decrease further. Experts indicate that the minimum GMP is ₹0.00 and the maximum is ₹5.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Aye Finance IPO details

The ₹1,010 crore offering consists of a new equity issuance amounting to ₹710 crore and a ₹300 crore share sale by existing investors like Alpha Wave India, MAJ Invest Financial Inclusion Fund, CapitalG (affiliated with Alphabet), LGT Capital, and Vikram Jetley. At the upper limit of the pricing range, the company's valuation stands at approximately ₹3,184 crore.

Among the major investors, Elevation Capital has a 16.03% stake, closely followed by LGT Capital with 13.99%, Alphabet through CapitalG at 13.14%, and Alpha Wave India with an 11.1% holding. British International Investment and A91 Emerging Fund both possess stakes greater than 9%.

The firm stated that the proceeds from the latest offering will be used to meet upcoming capital requirements resulting from business growth and asset development.

Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management serve as the lead managers, while Kfin Technologies Ltd. acts as the registrar for the offering.

Aye Finance IPO Review

As per Swastika Investmart, Aye Finance Limited is a non-banking financial institution (NBFC) that offers business loans to micro, small, and medium enterprises (MSMEs). The fundamentals look strong, with the company demonstrating consistent growth in both revenue and profits. The company suggests a P/E ratio of approximately 14x based on FY25 earnings, which is reasonably valued in comparison to some of its listed NBFC competitors. In summary, the IPO is a good fit for long-term investors who have confidence in the growth of MSME lending and possess a moderate risk tolerance for NBFC credit.

As per SBI Securities, Aye Finance is a non-banking financial company (NBFC) that focuses on providing loans to India’s underserved micro-scale businesses. The firm is pivoting towards an asset-backed approach by increasing its portfolio of mortgage loans, which are larger and have longer durations. This strategy is anticipated to reduce the company's credit costs, which are currently elevated at 7% (annualized for 1HFY26), in contrast to its competitors. The company's profits have dropped by approximately 40% year-on-year in 1HFY26, mainly due to a significant rise in impairment costs, a squeeze on net interest margins (NIM), and increased operational 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 Subscription Status

Aye Finance IPO subscription status was 12% on day 1, so far. The retail portion is subscribed 26%, and NII portion was booked 1% and Qualified Institutional Buyers (QIBs) portion received 13% bids.

The company has received bids for 54,46,548 shares against 4,55,32,785 shares on offer, at 17:00 IST, according to data on BSE.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.