IPO Details
Issue Opening Date: February 9, 2026
Issue Closing Date: February 11, 2026
Issue Size: Rs.1,010.00 Cr. (at upper price band of Rs.129)
Offer For Sale: Rs.300.00 Cr.
Face Value: Rs.2 per equity share
Price Band: Rs.122 to Rs.129 per equity share
Lot Size: 116 shares and multiples thereafter
Minimum Application Amount: Rs.14,964 (116 shares)
Maximum Application Amount: Rs.1,94,532 (1,508 shares)
Small HNI: Rs.2,09,496 (1,624 shares)
Big HNI: Rs.10,02,588 (7,772 shares)
Company Overview
Aye Finance Limited is a middle-layer NBFC (NBFC-ML) focused on providing loans to micro, small and medium enterprises (MSMEs) across India.
The company offers business loans for working capital and business expansion, secured by hypothecation of working assets or property, catering to manufacturing, trading, service, and allied agriculture sectors.
As of September 30, 2025, Aye Finance served 586,825 active unique customers across 18 states and 3 union territories, with assets under management (AUM) of Rs.60,276.22 million.
The company provides small-ticket loans with an average ticket size of Rs. 1.8 lakh and has demonstrated strong underwriting capabilities across diverse business clusters.
Aye Finance operates Switch Pe, a supply chain finance platform for micro and small enterprises. As of September 30, 2025, the platform had 2,304 users.
Key Highlights
Leading lender of small-ticket loans to micro MSMEs
Diversified pan-India sourcing and high customer retention
Effective underwriting methodology
Robust multi-tiered collection framework
Strong technology-led operating model
Access to diversified and cost-effective funding sources
Objects of the Issue
Augmenting capital base to support business and asset growth
General corporate purposes
The Offer for Sale aggregates up to Rs. 300 Cr. The company will not receive any proceeds from the Offer for Sale.
Financial Performance & Key Ratios
Between FY23 and FY25, Aye Finance delivered strong growth:
Revenue CAGR: 53%
PAT CAGR: 110%
AUM CAGR: 42.6%
Return on Equity improved from 5.46% in FY23 to 15.26% in FY25 and stood at 7.63% in H1FY26.
Gross NPA improved to 1.15% in FY25 from 1.28% in FY23. Capital Adequacy Ratio stood at 32.27% as of H1FY26.
The company also recorded the highest growth in AUM per branch and AUM per employee among peer MSME-focused NBFCs between FY23 and FY25.
However, the default rate increased to 38.52% in H1FY26 from 29.54% in FY23.
Risks to Consider
Intense competition in MSME lending
Regulatory and compliance risks
Asset quality and borrower default risks
High dependence on borrowed funds
Negative operating cash flows in the past
Interest rate and credit rating risks
Valuation Analysis
The IPO is priced at a P/BV of 1.45 based on a NAV of Rs. 88.66 as of H1FY26.
On annualized FY26 earnings, the issue is valued at approximately 20x P/E, compared to the industry average P/E of 19.70x, indicating that the issue is fully priced.
Our View – Should You Subscribe?
Aye Finance offers exposure to India’s expanding micro MSME lending segment supported by strong growth metrics and improving profitability.
However, considering NBFC sector risks, funding dependence, and valuation levels, investors with a long-term investment horizon may consider subscribing to the issue.
Frequently Asked Questions (FAQs)
What is Aye Finance Limited’s core business?
The company provides small-ticket business loans to micro and small enterprises across India.
What is the lot size for the IPO?
The lot size is 116 equity shares and in multiples thereafter.
Aye Finance IPO suitable for conservative investors?
The IPO carries NBFC sector risks and may be more suitable for investors with moderate to high risk appetite and long-term outlook.
What is the Sushil Finance view on the IPO?
The issue is recommended for subscription with a long-term investment horizon.
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Brief Financials
| PARTICULARS | ₹ in Million | |||
| As at Sep 30, 2025 | FY ‘25 | FY ‘24 | FY ‘23 | |
| Total Income | 8,630.22 | 15,049.87 | 10,717.50 | 6,433.35 |
| Total Expenditure | 7,804.44 | 12,799.75 | 8,438.94 | 5,719.39 |
| AUM | 60,276.22 | 55,338.96 | 44,632.91 | 27,215.51 |
| Profit before Tax | 825.78 | 2,250.12 | 2,278.56 | 713.96 |
| Profit after Tax | 645.97 | 1,752.52 | 1,716.79 | 398.73 |
| E.P.S. (Diluted) | 3.32* | 9.34 | 10.50 | 2.54 |
| P/E (x) (Diluted) | - | 14 | - | - |
| ROE (%) | 7.63* | 12.12 | 17.28 | 5.46 |
| Net Interest Margin (%) | 14.12 | 15.31 | 15.56 | 13.54 |
| Net NPA ratio (%) | 1.78 | 1.40 | 0.91 | 1.28 |
*Not annualised
PRICE CHART (@ ₹ 129) (Retail Category)
| LOT SIZE | |
| Amount | |
| 116 | 14,964 |
| 232 | 29,928 |
| 348 | 44,892 |
| 464 | 59,856 |
| 580 | 74,820 |
| 696 | 89,784 |
| 812 | 104,748 |
| 928 | 119,712 |
| 1,044 | 134,676 |
| 1,160 | 149,640 |
| 1,276 | 164,604 |
| 1,392 | 179,568 |
| 1,508 | 194,532 |
HNI Payment Chart
| Category | ||
| No. of Shares | Minimum Bid Lot Amount (Rs.) | |
| Small HNI | 1,624 | 209,496 |
| Big HNI | 7,772 | 1,002,588 |
Indicative Time Table
| Tentative Events | |
| Indicative Dates | |
| Finalisation of Basis of Allotment with the Designated Stock Exchange | 12/2/2026 |
| Initiation of refunds/unblocking ASBA Fund | 12/2/2026 |
| Credit of Equity Shares to demat accounts of Allottees | 13/2/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges | 16/2/2026 |