Aye Finance IPO

About the company

Aye Finance Limited is a middle-layer non-banking financial company focused primarily on lending to very small-scale MSMEs all over India, mainly for working capital and business expansion. As of September 30, 2025, the company had 586,825 active customer accounts in 18 states and 3 UTs and an AUM of ₹6,027.62 crore. The company operates under a phygital model, which means it has a strong physical branch and field presence along with digital processes, thus allowing it to reach semi-urban markets very effectively. The company’s average loan size is ₹1.8 lakhs. Its loan portfolio is geographically well balanced, with no single state contributing more than 15.77% of AUM and the top 5 states together making up 57%. By geographical zones, AUM is distributed between the North (34.8%), East (27.8%), West (22.7%), and South (14.7%) areas, and it is present in 415 districts through 568 branches. The credit portfolio is spread across four products, with the major share of the loan book going to secured hypothecation loans at 41.01% of AUM and unsecured hypothecation loans at 37.97%, followed by mortgage loans at 19.28% and saral property loans at 1.74%. Mortgage loans have grown substantially as they made up only 1.86% of the loan book in March 2023, which has now increased to 19.28% by September 2025. The average ticket size of these loans is ₹4.1 lakhs, and the average tenure is over 75.12 months. The primary clientele are micro enterprises with annual turnover of between ₹20 lakh and ₹100 lakh, mostly situated in semi-urban areas. More than 90.9% of the clients are either living in or running their businesses from the premises that they own, 94% customers have 5 or fewer employees, and 37.2% of newly acquired customers are first-time borrowers, normally coming from informal sources of credit that charge an interest rate of 36% to 60% per annum. On the operational front, the company has developed impressive collection mechanisms with more than 93.45% of the active loans being under ACH mandates and the cashless mode accounts for over 81.83% of collections in H1FY26. Gross NPAs stood at 4.85% and net NPAs at 1.78% as of September 2025, whereas stage 2 assets at 1.65% are significantly lower than those of the peer group. Collection efficiency was at 89.72%, and capital adequacy was maintained at a robust level of 32.27%. Branch network expansion had been the key driver of growth, with the company increasing its network from 398 branches in FY23 to 568 branches by September 2025, of which around 58.63% have been matured for over 3 years. Customer engagement is still at high levels, as can be seen from the high repeat purchases, a low foreclosure rate of less than 2.86% in FY25, and a net promoter score of 89.65%. Disbursements rose from ₹2,357.09 crore in FY23 to ₹4,291.34 crore in FY25, with ₹2,316.79 crore disbursed in H1FY26. The portfolio is also diversified by industry, with top sectors being trading, which contributed 49.68% of AUM, followed by livestock and allied activities at 27.12%, manufacturing at 13.26%, and services at 9.94%, which are distributed across more than 70 MSME clusters. About 98% of the MSMEs in India are micro enterprises, which can be seen in the MSME sector of India as heavily focused on micro enterprises and hence making small-ticket loans the largest addressable market segment for such loans. Based on estimates, MSME credit requirement is expected to be around ₹159 lakh crore as of FY25, but only about 27%-28% of it is currently being financed through formal channels. Thus, a credit gap of approximately ₹34 lakh crore exists that is not financed even by the formal financial system. India has over 5.77 crore MSMEs, which contribute approximately 30% to the national GDP, and have a substantial impact on the Indian economy, accounting for almost 30% of the country's GDP. However, the sector is still grappling with a major financing gap, as the demand for credit has gone unmet to the tune of ₹103 lakh crore, which was expected to increase to about ₹117 lakh crore by FY25. This growing gap clearly indicates a strong potential for lenders focusing on micro and small enterprises. Multiple NBFCs are making steady inroads within this segment, especially in the loan segment of ₹1 lakh to ₹5 lakh, where their market share has gone up from 9.2% in FY19 to 16.6% in FY25, and this is likely to increase further in future. The company enjoys a considerable leverage on prices in the micro enterprise segment where the service is under penetrated, since the interest rates it charges on formal loans which are up to 26% per annum for mortgage loans and 32% per annum for hypothecation loans, are significantly lower than the 36% to 60% per annum rates that informal sources such as money lenders and chit funds charge. Now, Aye Finance Ltd is launching its initial public offering (IPO), which consists of a fresh issue of ₹710 crore and an offer for sale of ₹300 crore. The total issue size of the IPO is ₹1,010 crore. Its shares will be listed on the NSE and BSE. ### **How to apply for the Aye Finance IPO?** If you are interested in this investment opportunity but unsure how to apply for the Aye Finance IPO, here are the steps that you need to follow. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Aye Finance IPO on Upstox: - Log in to your Upstox account, using your six-digit PIN - After logging in, click on ‘Discover’ - On the ‘Discover’ tab, you will find the ‘Invest in IPO’ section - Under the Invest in IPO section, look for the ‘Aye Finance IPO’ tab and click on it - Now fill in all the required information, like ‘bid price’ and ‘lot size’ - Confirm and click on ‘Apply’ - Accept the mandate on your UPI app ### **How to check Aye Finance IPO Allotment Status? ** When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally completed on the next working day after an IPO closes. Here’s a step-by-step guide on how to check the Aye Finance IPO allotment status: - Login to your Upstox account, using your six-digit PIN - After logging in, click on ‘Discover’ - On the ‘Discover’ page, you will find the ‘Invest in IPO’ section - Under the Invest in IPO section, you will find the ‘View all’ option - Once you click on ‘View all’, you will be directed to the ‘IPO’ tab - In the ‘IPO’ tab, click on ‘My applications’ - In ‘My applications’, under the History section, your Aye Finance IPO allotment status will be mentioned ### **How to pre-apply for the Aye Finance IPO?** You can pre-apply for the Aye Finance IPO on Upstox. The pre-application for this IPO, which means the pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: - Login to your Upstox account, using your six-digit PIN - After successfully logging in, click on ‘Discover’ - On the Discover tab, you will find the ‘Invest in IPO’ section - Under the Invest in IPO section, look for the ‘Aye Finance IPO’ tab and click on it - Now fill in all the required information, like ‘bid price’ and ‘lot size’ - Confirm and click on ‘Pre-Apply’ - Accept the mandate on your UPI app

GMP trend (Grey Market Premium by date)

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   09 Feb 2026

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   11 Feb 2026

   Last day to place your bid

3. Basis of Allotment

   Completed
   12 Feb 2026

   Share allotment finalised

4. Refund Initiation

   Completed
   13 Feb 2026

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   13 Feb 2026

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   16 Feb 2026

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.