Aye Finance IPO Receives Tepid Investor Response on Opening Day
The initial public offering (IPO) of Aye Finance, which commenced bidding on February 9, has garnered a notably subdued response from the investment community. By the conclusion of the first day, the issue managed to attract bids for a mere 54.75 lakh shares. This figure stands in stark contrast to the total offer size of 4.25 crore shares, resulting in an overall subscription rate of just 0.13 times.
Detailed Breakdown of Investor Category Subscriptions
A closer examination of the subscription data reveals varied levels of interest across different investor segments. The retail investor portion demonstrated relatively stronger engagement, achieving a subscription of 0.28 times. Qualified Institutional Buyers (QIBs) showed moderate interest, with their quota being booked 0.14 times. However, the most pronounced lack of enthusiasm was observed in the non-institutional investor (NII) segment, which recorded a strikingly low subscription of only 0.01 times.
IPO Structure and Fundraising Objectives
Aye Finance is targeting a substantial capital raise of ₹1,010 crore during the bidding window, which remains open from February 9 to February 11. The IPO is structured as a combination of a fresh issue and an offer for sale. Specifically, the fresh issue comprises 5.50 crore shares, aggregating to ₹710 crore. Concurrently, the offer for sale involves 2.33 crore shares, valued at ₹300 crore.
The price band for the shares has been firmly established at ₹122 to ₹129 per share. The net proceeds generated from the fresh issue are earmarked for a strategic purpose: to fortify the company's capital base. This financial bolstering is intended to support future capital requirements that will inevitably arise from the planned expansion of its business operations and asset portfolio.
Investment Details and Allocation Framework
For retail investors considering participation, the application process is structured around a lot size of 116 shares and multiples thereof. At the upper limit of the price band (₹129 per share), this translates to a minimum investment threshold of ₹14,964.
The allocation framework for the IPO is clearly defined. Qualified Institutional Buyers are slated to receive the lion's share, with 75% of the issue allocated to this category. The remaining portions are divided between non-institutional investors, who are allocated 15%, and retail investors, who receive 10%.
Management and Current Market Indicators
The IPO is being orchestrated by a consortium of reputable book-running lead managers: Axis Capital, IIFL Capital, JM Financial, and Nuvama Wealth. KFin Technologies has been appointed as the registrar to the issue, overseeing the administrative and procedural aspects.
A significant market indicator, the grey market premium (GMP) for the Aye Finance IPO, currently stands at nil. This suggests a market expectation that the stock is likely to list at or very close to its IPO price, reflecting the cautious sentiment surrounding the offering.
Company Profile: Aye Finance's Core Business
Aye Finance operates as a specialized non-banking financial company (NBFC), classified within the middle-layer category. Its primary business model revolves around providing small-ticket business loans. These loans are designed to facilitate working capital needs and business expansion for micro and small enterprises (MSEs).
The company secures these loans through the hypothecation of business assets or property. Its operational footprint spans key sectors including manufacturing, trading, services, and allied agriculture. Aye Finance focuses on the MSE segment, which has historically been underserved by traditional banking institutions.
As per the Draft Red Herring Prospectus (DRHP) report, as of September 30, 2025, Aye Finance had established a significant presence across 18 states and three union territories. The company served approximately 5.9 lakh active customers and reported assets under management (AUM) amounting to ₹6,027.6 crore.
Disclaimer: Investors are strongly advised to consult with certified financial experts and conduct thorough due diligence before making any investment decisions related to this or any other public offering.
