MSME-focused lender Aye Finance IPO opens February 9; price band set at Rs 122–129 per share

Aye Finance has set a price band of Rs 122 to Rs 129 per equity share for its initial public offering, with the issue scheduled to open for subscription on February 9 and close on February 11.

The anchor investor allocation is slated for February 6, while the shares are expected to list on the BSE and NSE on February 16.

The Rs 1,010 crore public issue comprises a fresh issue of equity shares worth Rs 710 crore and an offer for sale of Rs 300 crore by existing shareholders. Selling investors include Alpha Wave India, CapitalG, MAJ Invest Financial Inclusion Fund, LGT Capital Invest Mauritius, and Vikram Jetley.

At the upper end of the price band, Aye Finance is valued at around Rs 3,184 crore.

The company has fixed the lot size at 116 equity shares and multiples thereafter. As per the issue structure, not less than 75 percent of the net offer is reserved for qualified institutional buyers, up to 15 percent for non-institutional investors, and up to 10 percent for retail individual investors. The basis of allotment is expected to be finalised on February 12, with refunds and credit of shares to demat accounts scheduled for February 13.

Proceeds from the fresh issue will be used to augment the company’s capital base to support future capital requirements arising from business and asset growth.

In its red herring prospectus, Aye Finance said it also expects benefits from listing, including enhanced brand visibility and the creation of a public market for its equity shares in India.

Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management are acting as the book-running lead managers to the issue, while Kfin Technologies is the registrar.

Founded in 2014, Aye Finance is a non-banking financial company classified as a middle-layer NBFC. It focuses on providing secured and unsecured business loans to micro-scale, micro, small and medium enterprises for working capital and business expansion.

Its product portfolio includes mortgage loans, Saral Property Loans, secured hypothecation loans, and unsecured hypothecation loans, serving customers across manufacturing, trading, services, and allied agricultural sectors.

As of September 30, 2025, the company served 5.86 lakh active unique customers across 18 states and three union territories, with assets under management of Rs 6,027.6 crore.

For the financial year ended March 2025, Aye Finance reported a profit of Rs 175.3 crore, up from Rs 171.7 crore a year earlier. Net interest income rose 37.9 percent year on year to Rs 858 crore.

Among its key shareholders, Elevation Capital holds a 16.03 percent stake, followed by LGT Capital with 13.99%, CapitalG with 13.14%, and Alpha Wave India with 11.1%. British International Investment and A91 Emerging Fund each hold stakes of over 9%.