Aye Finance IPO Concludes with Modest 1.04 Times Subscription
The initial public offering (IPO) of Aye Finance, which witnessed a tepid response from investors during its initial two days, managed to sail through on the final day of bidding, February 11. The issue garnered bids for 4.42 crore shares against the total offer size of 4.25 crore shares, resulting in an overall subscription of 1.04 times.
Investor Category-Wise Subscription Details
The subscription pattern revealed a mixed response across different investor segments:
- Qualified Institutional Buyers (QIB): This category demonstrated the strongest interest, with the quota being oversubscribed 1.62 times.
- Retail Investors: The retail portion saw a subscription of 0.81 times, indicating cautious participation from individual investors.
- Non-Institutional Investors (NII): This segment recorded the weakest response, with subscriptions reaching only 0.05 times.
IPO Structure and Financial Details
The Aye Finance IPO is a ₹1,010 crore offering, comprising two key components:
- A fresh issue of 5.50 crore shares, aggregating to ₹710 crore.
- An offer for sale of 2.33 crore shares, valued at ₹300 crore.
The price band for the IPO has been fixed at ₹122 to ₹129 per share. The company intends to utilize the net proceeds from the fresh issue primarily to strengthen its capital base. These funds will support future capital requirements arising from the expansion of its business operations and asset base.
Management and Current Market Sentiment
The IPO is being managed by a consortium of book-running lead managers, including Axis Capital, IIFL Capital, JM Financial, and Nuvama Wealth. KFin Technologies is acting as the registrar to the issue.
As of the latest update, the grey market premium (GMP) for the Aye Finance IPO stands at nil. This suggests that the stock is likely to list at or very close to its IPO price, reflecting a neutral to cautious market sentiment regarding immediate listing gains.
About Aye Finance: Business Model and Reach
Aye Finance operates as a middle-layer Non-Banking Financial Company (NBFC) with a specific focus on micro and small enterprises (MSEs). The company provides small-ticket business loans for purposes such as working capital and business expansion. These loans are typically secured through the hypothecation of business assets or property.
The company caters to a diverse range of sectors, including manufacturing, trading, services, and allied agriculture. It targets an underserved segment that often faces challenges in securing credit from traditional banking institutions.
According to its Draft Red Herring Prospectus (DRHP), as of September 30, 2025, Aye Finance had a significant operational footprint. It served approximately 5.9 lakh active customers across 18 states and three union territories in India. The company reported assets under management (AUM) of ₹6,027.6 crore, underscoring its scale in the niche lending market.
Disclaimer: Investors are strongly advised to consult with certified financial experts and conduct their own thorough research before making any investment decisions related to IPOs or other securities.
