The Aye Finance IPO is one of the most closely watched finance IPOs scheduled for February 2026, as it brings a specialised non-banking financial company (NBFC) focused on loans to micro-scale MSMEs to the Indian securities market. The launch of the ipo aye has generated significant investor interest, with many looking forward to details on pricing, allotment, and the overall IPO timeline.
Aye Finance Limited operates in the high-growth small business lending segment, offering secured and unsecured business loans, including unsecured small business loans for working capital, to micro enterprises, medium enterprises, and businesses in the manufacturing trading service sectors as well as allied agriculture.
The target customer segment for Aye Finance includes micro enterprise owners in urban and semi-urban areas, particularly those engaged in manufacturing, trading, and services. Many of these customers do not possess documentation such as income proof, business registration, or GST registration.
As a leading lender in the SBFC finance space, the company caters to borrowers who typically lack formal documentation, positioning Aye Finance as a critical enabler of cost-effective financing for India’s underserved micro-scale MSMEs.
Aye Finance IPO Details (Finance IPO Details)
| Particulars | Details |
|---|---|
| IPO Date | 9 to 11 Feb, 2026 |
| IPO Listing Date | Mon, Feb 16, 2026 |
| Face Value | ₹2 per equity share |
| IPO Price Band | ₹122 to ₹129 per share |
| Lot Size / Minimum Order Quantity | 116 Shares |
| Issue Type | Bookbuilding IPO |
| Sale Type | Fresh Capital & Offer for Sale |
| Listing At | BSE, NSE |
| Total Issue Size | 7,82,94,572 shares (₹1,010 Cr) |
| Fresh Issue | 5,50,38,759 shares (₹710 Cr) |
| Offer for Sale | 2,32,55,813 shares (₹300 Cr) |
| Shareholding Pre Issue | 19,17,45,507 shares |
| Shareholding Post Issue | 24,67,84,266 shares |
The Aye Finance Ltd IPO price band makes this finance IPO accessible to retail investors, with a minimum investment of ₹14,964 at the upper price band.
Aye Finance IPO Dates and Timetable (Key Dates in Table)
| Event | Date |
|---|---|
| Aye Finance IPO Opens | Mon, Feb 9, 2026 |
| Aye Finance IPO Closes | Wed, Feb 11, 2026 |
| IPO Allotment | Thu, Feb 12, 2026 |
| Refund Initiation | Fri, Feb 13, 2026 |
| Credit of Shares to Demat Account | Fri, Feb 13, 2026 |
| IPO Listing Date | Mon, Feb 16, 2026 |
Aye Finance Limited: NBFC Focused on Business Loans for Micro Enterprises
Aye Finance Limited is a Gurugram-based non-banking financial company that primarily serves micro-scale MSMEs through unsecured loans, secured and unsecured hypothecation loans, and saral property loans.
The company offers business loans for working capital, small ticket loans, and financing solutions for service and allied agriculture, manufacturing, and trading service and allied sectors.
Aye Finance operates a phygital model, blending digital underwriting with an on-ground branch network, enabling deep penetration across 18 states and three union territories.
Aye Finance Ltd IPO Business Model: Loans to Micro-Scale MSMEs Across India
Aye Finance’s business model is built around company offers business loans to borrowers often excluded from traditional banking:
- Unsecured small business loans and mortgage loans
- Loans for working capital and business expansion
- Financing for micro enterprises, medium enterprises, and traders
- Lending to allied agriculture sectors
As of September 2025:
- Assets under management (AUM) stood at ₹6,027.62 crore
- Unsecured loans accounted for ~38% of AUM
- The company served 586,825 active customers
This diversified lender base helps Aye Finance scale rapidly, but also exposes it to interest rate risk, credit risk, and rising gross NPA ratios.
Financial Performance and Financial Condition of Aye Finance Ltd
| Metric | Value 1 | Value 2 | Value 3 | Value 4 | Value 5 |
|---|---|---|---|---|---|
| Assets | 7,116.01 | 6,338.63 | 5,819.05 | 4,869.59 | 3,126.00 |
| Total Income | 863.02 | 1,504.99 | 717.05 | 1,071.75 | 643.34 |
| Profit After Tax | 64.60 | 175.25 | 107.80 | 171.68 | 39.87 |
| Net Worth | 1,727.37 | 1,658.87 | 1,593.17 | 1,232.65 | 754.49 |
| Total Borrowing | 5,218.50 | 4,526.33 | 4,083.10 | 3,498.99 | 2,296.16 |
(₹ in Crore)
While net interest income and profitability have improved, investors should note:
- Negative operating cash flow of ₹811.78 crore in FY25
- Gross NPA ratio rising to 4.85% by September 2025
- High employee attrition rate of 64.56%
Industry Outlook for Micro-Scale MSME Lending in India
The micro-scale MSME lending sector in India is poised for robust growth, driven by the rising demand for credit among small businesses and micro enterprises. As of fiscal 2025, the MSME sector faces a staggering credit shortfall of approximately ₹103 trillion, with micro enterprises accounting for nearly 98% of all MSMEs. The total potential credit demand from MSMEs is projected to reach ₹76 trillion in fiscal 2025, underscoring the vast opportunity for lenders specializing in loans to micro scale businesses.
Non-banking financial companies (NBFCs) like Aye Finance have rapidly increased their market share in MSME financing, growing from 9.2% in fiscal 2019 to 16.6% in fiscal 2025. This trend is expected to continue as NBFCs leverage their expertise and flexible lending models to serve micro scale MSMEs that are often overlooked by traditional banks. Government initiatives to support MSMEs, combined with the sector’s growing appetite for cost-effective financing, create a positive industry outlook. Companies such as Aye Finance, with their focus on loans to micro scale enterprises, are well-positioned to capitalize on this expanding market, making the upcoming finance IPO an attractive proposition for investors seeking exposure to this high-growth segment.
Key Features of Aye Finance’s Offerings
Aye Finance stands out in the market by offering a comprehensive suite of business loans tailored specifically for micro scale MSMEs and micro enterprises. Their product portfolio includes secured and unsecured small business loans, working capital loans, unsecured hypothecation loans, and mortgage loans, all designed to address the unique needs of small businesses seeking cost effective financing for business expansion and day-to-day operations.
One of the hallmarks of Aye Finance’s offerings is the small ticket size, with an average disbursement of just ₹0.018 crores, making their loans accessible to even the smallest enterprises. The company provides both secured and unsecured options, with secured loans typically backed by hypothecation of working assets or property, helping to mitigate risk for both lender and borrower. Aye Finance’s diversified lender base, robust risk management systems, and professional management team further enhance their ability to serve micro scale MSMEs effectively. By focusing on flexible, accessible, and affordable business loans, Aye Finance empowers micro enterprises to meet their working capital needs and drive business growth.
Market Position of Aye Finance Ltd Among NBFCs
Aye Finance Ltd has established itself as a leading non-banking financial company (NBFC) in the micro-scale MSME lending space in India. The company’s strong market position is underpinned by its diversified pan-India presence, with operations spanning 18 states and 3 union territories. Over the past three fiscal years, Aye Finance has significantly expanded its reach, adding more than 260 branches to its network, which enables it to serve a broad spectrum of micro scale MSMEs across urban and semi-urban regions.
The company’s robust financial performance further cements its standing among NBFCs. In FY2025, Aye Finance reported a total income of ₹1,504.99 crores and a profit after tax of ₹175.25 crores, reflecting its ability to scale operations while maintaining profitability. As the Aye Finance IPO opens in Feb 2026, the company’s established presence, strong brand, and focus on loans to micro scale businesses position it as a key player in the sector, making it a noteworthy contender in the finance IPO landscape.
Growth Prospects for Aye Finance Ltd Post-IPO
The outlook for Aye Finance Ltd following its IPO is highly promising, with several factors supporting its future growth trajectory. The infusion of capital from the finance IPO is expected to enable the company to expand its lending portfolio, strengthen its balance sheet, and invest in technology and risk management systems. This will allow Aye Finance to reach more micro scale MSMEs and further solidify its leadership in the sector.
Aye Finance’s experienced professional management team, combined with a diversified lender base and robust risk management framework, provides a strong foundation for sustainable growth. The company is well-positioned to benefit from the increasing demand for credit among micro enterprises. With a clear strategy and strong market fundamentals, Aye Finance Ltd is set to capitalize on the opportunities presented by India’s evolving MSME lending landscape.
Risks and Challenges Facing Aye Finance Ltd
Despite its strong market position, Aye Finance Ltd faces several risks and challenges that could impact its future performance. One of the primary concerns is the risk of deteriorating asset quality, as reflected in the company’s rising gross NPA ratio. A significant portion of Aye Finance’s lending portfolio consists of unsecured loans and small ticket loans, which are inherently more vulnerable to defaults, especially during economic downturns.
Interest rate risk and the ability to access substantial capital at competitive rates are ongoing challenges, particularly as the company seeks to expand its business loans portfolio and manage negative cash flows. Regulatory changes in the securities market, as well as increased competition from other NBFCs and banks, could also affect Aye Finance’s market share and profitability. The company’s operations in service and allied agriculture, trading service and allied sectors, and across multiple union territories, expose it to diverse regional risks and compliance requirements.
Additionally, Aye Finance’s reliance on a diversified lender base and party service providers means that any disruption in funding or operational support could impact its financial condition. The company must also ensure that all the related documents and disclosures for the IPO are accurate to avoid any erroneous or misleading information that could affect investor confidence. As the IPO listing date approaches, investors should carefully consider these risks, including the company’s experienced negative cash flows, gross NPA ratio, and the need to manage its portfolio effectively, before making investment decisions in the Aye Finance IPO.
Anchor Investors and Lead Managers
- Lead Managers: Axis Capital Ltd., JM Financial, IIFL Capital Services, Nuvama Wealth Management
- Registrar: KFin Technologies Ltd.
- Anchor Investors: 50% subject to 90-day lock-in, remaining 50% locked for 30 days
The presence of marquee investors and institutional backing strengthens confidence in the Aye Finance IPO.
Aye Finance IPO Allotment Status and Listing
- IPO Allotment Status: Expected on Feb 12, 2026
- Investors can check the IPO allotment status on:
- KFin Technologies Ltd website
- BSE and NSE portals
The IPO listing date is scheduled for February 16, 2026, on both BSE and NSE.
How to Apply for Aye Finance IPO (Demat Account Required)
To apply for Aye Finance IPO:
- Ensure you have an active Tradejini demat account and bank account
- Apply via:
- UPI-based ASBA
- Net banking
- IPO application form through stock brokers
- Choose bid price within the price band
- Confirm UPI mandate before cutoff
Conclusion: Should You Consider the Aye Finance IPO?
The Aye Finance IPO offers exposure to a fast-growing finance IPO in the micro-scale MSME lending segment. Strong revenue growth, expanding branch network, and focus on unsecured loans for working capital are positives.
However, rising gross NPA ratios, high leverage, and cash flow pressures mean this IPO is best suited for investors with a moderate-to-high risk appetite.
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