Aye Finance IPO

About Aye Finance IPO

The Aye Finance IPO opens on Monday, Feb 9, 2026 and closes on Wednesday, Feb 11, 2026. The allotment of shares will take place on Thursday, Feb 12, 2026. The credit of shares to the demat account will take place on Friday, Feb 13, 2026. The initiation of refunds will take place on Friday, Feb 13, 2026. The listing of shares will take place on Monday, Feb 16, 2026.

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include 5.50 crore shares aggregating to ₹710.00 crores. The offer for sale portion includes 2.33 crore shares aggregating to ₹300.00 crores. The total number of shares and aggregate amount are 7,82,94,572 shares (aggregating up to ₹1,010 crores).

Aye Finance IPO price band is set at ₹122 to ₹129 per share. The minimum amount of investment required by the retail category is ₹14,964 (116 shares) (based on upper price). The lot size required for investment by sNII is 14 lots (1,624 shares), amounting to ₹2,09,496, and for bNII, it is 67 lots (7,772 shares), amounting to ₹10,02,588.

Aye Finance is a non-banking financial company – middle layer (NBFC-ML) focused on providing loans to micro scale micro, small and medium enterprises (MSMEs) across India. They offer a range of business loans for working capital and business expansion needs, against hypothecation of working assets or against security of property to customers across manufacturing, trading, service and allied agriculture sectors.

Objectives of Aye Finance IPO

• Augmenting their capital base to meet the company’s future capital requirements arising out of growth of their business and assets.
• The company expects to receive the benefits of listing of the equity shares on the Stock Exchanges, including enhancement of the company’s brand name and creation of a public market for the equity shares in India.

Industry Outlook

The NBFC sector has, over the years, evolved considerably in terms of size, operations, technological sophistication, and entry into newer areas of financial services and products. The number of NBFCs as well as the size of the sector has grown significantly, with a number of players with heterogeneous business models starting operations. The increasing penetration of neo-banking, digital authentication, and mobile phone usage as well as mobile internet has resulted in the democratisation of financial services, particularly credit.

Overall NBFC credit during Fiscals 2019 to 2025, is estimated to have witnessed a CAGR of approximately 13.2% which was majorly led by retail segment which is estimated to have witnessed a CAGR of approximately 16%, while NBFC non-retail credit is estimated to have witnessed a growth of approximately 11.5% during the same time period. Going forward, growth in the NBFC retail segment is expected at 17% to 19% from Fiscal 2025 to Fiscal 2027 which will support overall NBFC credit growth, with continued focus on the retail segment.

About Aye Finance

Aye Finance is a middle-layer NBFC (NBFC-ML) that provides loans to micro-scale MSMEs across India, offering business loans for working capital and expansion, secured through hypothecation or property collateral. They are among the leading nonbanking financial companies (“NBFCs”) providing business loans to the largely underserved micro scale enterprises in India, with 586,825 active unique customers across 18 states and 3 union territories and with assets under management (“AUM”) of ₹ 6027.622 crores, as of September 30, 2025. (Source: CRISIL Report) They offer small-ticket business loans with an average ticket size (“ATS”) on disbursement of ₹ 0.018 crores to micro enterprises.

Strengths of Aye Finance

• Leading lender of small-ticket loans to Micro Scale MSMEs with comprehensive product offerings and focus on serving large and unaddressed TAM.
• Strong sourcing capabilities supported by a diversified pan-India presence and high customer retention.
• Effective underwriting methodology.
• Robust multi-tiered collection capabilities.
• Building resilience through technological prowess.
• Access to diversified lender base and cost-effective financing.
• Experienced and professional management team backed by marquee investors with a committed employee base.

Risks of Aye Finance

• Risk of non-payment or default by their borrowers.
• Depend on the accuracy and completeness of information provided by their customers and certain third party service providers.
• Vulnerable to interest rate risk.
• Require substantial capital.

Source:
All the financial information for Aye Finance mentioned above is based on the Restated Financial Statements for the year ended March 31, 2025/ signed financial statement. For SBFC Finance Limited and Five-Star Business Finance Limited, financial information is taken from consolidated financial statements and financial statements respectively of the annual report for Fiscal 2025.
#To be included in respect of Aye Finance in the Prospectus based on the Offer Price.
Notes:
(1) Basic/diluted earnings per share refers to the basic/diluted earnings per share sourced from the financial statements of the respective peer group companies for the financial year ended.
(2) Basic Net Asset Value per Equity Share = Net worth as per the Restated Financial Statement / Weighted Average number of Equity Shares as at the end of year.
(3) Diluted Net Asset Value per Equity Share = Net worth as per the Restated Financial Statements / weighted average number of equity shares outstanding during the year/period plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.
(4) Return on net worth is computed as net profit after tax attributable to shareholders divided by average of opening and closing net worth of the year. Net worth represents total equity as of the last day of the relevant year / period.
(5) Price/earning ratio for the peer group has been computed based on the closing market price of equity shares on February 2, 2026, on www.nseindia.com, divided by the diluted earnings per share for the financial year ended March 31, 2025.
(6) Market capitalization is the product of the basic shares outstanding as on March 31, 2025 multiplied by the closing price as on February 2, 2026

Anchor Investor Bidding Date:

Friday, February 6, 2026*

*The company in consultation with the BRLMs, may consider participation by Anchor Investors, in accordance with the SEBI ICDR Regulations. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.

Registrar: KFin Technologies Limited
Book Running Lead Managers:

• Axis Capital Limited
  
• IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
  
• JM Financial Limited
  
• Nuvama Wealth Management Limited

Aye Finance Business Model

The company earns its revenue as a non-banking financial company – middle layer (NBFC-ML) through providing loans to micro scale micro, small and medium enterprises (MSMEs) across India.

Aye Finance Growth Trajectory

The company’s Total Income was ₹1504.987 crores in FY2025, ₹1071.750 crores in FY2024, and ₹643.335 crores in FY2023, respectively.

Their Profit/ (Loss) After Tax was ₹175.252 crores in FY2025, ₹171.679 crores in FY2024, and ₹39.873 crores in FY2023.

EBITDA was ₹715.176 crores in FY2025, ₹568.931 crores in FY2024, and ₹280.803 crores in FY2023.

Aye Finance Market Position

Over the last three fiscal years and in the six months ended September 30, 2025, the company has expanded significantly, adding more than 260 branches.

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹1504.987 crores, ₹175.252 crores, and ₹715.176 crores, respectively.

How to apply for Aye Finance IPO?

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.