Aye Finance IPO Subscription Status: 16% Filled After Two Days
The initial public offering (IPO) of Aye Finance Limited, which commenced bidding on February 9, has garnered a 16% subscription by the conclusion of the second day. The mainboard IPO is scheduled to close for bidding on Wednesday, February 11, 2026.
Company Overview and Financial Performance
Established in 1993, Aye Finance Limited specializes in providing both secured and unsecured working capital loans to micro-scale Micro, Small, and Medium Enterprises (MSMEs). The company serves sectors including manufacturing, trading, services, and allied agriculture. According to its Red Herring Prospectus (RHP), its listed peers encompass SBFC Finance Ltd, trading at a Price-to-Earnings (P/E) ratio of 27.32, and Five-Star Business Finance Ltd, with a P/E of 12.07.
In the fiscal year 2025, Aye Finance reported a net profit of ₹175.3 crore, marking a slight increase from ₹171.7 crore in the previous year. Concurrently, its net interest income surged by 37.9% to ₹858 crore. As of September 30, 2025, the company operated across 18 states and three union territories, serving approximately 5.9 lakh active customers and managing assets valued at ₹6,027.6 crore.
Detailed Subscription Figures and Investor Response
The IPO has experienced a tepid response from investors, achieving an overall subscription of merely 0.16 times by the end of day two. The retail investor segment was subscribed 0.47 times, while the non-institutional investors’ category attracted a minimal 0.02 times subscription. The Qualified Institutional Buyers (QIB) portion was subscribed 0.13 times.
In aggregate, the issue received bids for 72.57 lakh shares against a total offer size of 4.55 crore shares.
Brokerage Firm Reviews and Ratings
Brokerage firm Choice Equity Broking assigned a ‘subscribe for long-term’ rating to the Aye Finance IPO. The firm noted that at the upper price band, the issue is priced at a post-issue Price-to-Book Value (P/BV) of 1.3x, which is below the peer average. This discount appropriately reflects the company’s elevated Gross Non-Performing Assets (GNPAs) and credit costs, offering a risk-adjusted entry point for long-term investors.
Choice Equity Broking elaborated: “On the positive side, the Company has demonstrated strong growth in its top line, with interest income rising 47.9% and Assets Under Management (AUM) increasing 47.4% between FY22 and FY25. While the declining Return on Equity (ROE) and Return on Assets (ROA) highlight operational pressures amid industry stress, the recovering Non-Banking Financial Company (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.”
Conversely, Swastika Investmart issued a ‘neutral’ rating for the Aye Finance IPO, acknowledging that the fundamentals appear solid, with the company exhibiting consistent revenue and profit growth.
Swastika Investmart stated: “Company implying a P/E multiple near ~14x based on FY25 earnings reasonably priced compared with some listed NBFC peers. Overall, the IPO is suitable for long-term investors with belief in MSME lending growth and moderate NBFC credit risk appetite.”
Grey Market Premium and IPO Details
The grey market premium (GMP) for the Aye Finance IPO remains unchanged ahead of its debut. As of February 11, the shares were quoting at a GMP of ₹0, indicating a potential listing price of approximately ₹129, aligning with the upper end of the issue price band.
Aye Finance aims to raise ₹1,010 crore through its IPO, comprising a fresh issue of 5.50 crore shares aggregating ₹710 crore and an offer for sale of 2.33 crore shares worth ₹300 crore. Prior to the launch, the company secured ₹454.5 crore from anchor investors on February 6.
Shareholding Structure and Key Dates
The shareholding pattern includes:
- Elevation Capital: 16.03% stake
- LGT Capital: 13.99% stake
- Alphabet via CapitalG: 13.14% stake
- Alpha Wave India: 11.1% stake
- British International Investment and A91 Emerging Fund: each hold stakes exceeding 9%
The IPO features a lot size of 116 shares, necessitating a minimum retail investment of ₹14,964. The basis of allotment is anticipated on February 12, 2026, with the company expected to list on February 16, 2026, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
According to the company, the funds raised will be utilized to support future capital requirements driven by business expansion and asset growth.
Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management serve as the book-running lead managers for the issue, while Kfin Technologies Ltd. acts as the registrar.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to consult with certified experts before making any investment decisions.
