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Aye Finance IPO
Aye Finance Ltd
₹14,152 /116 sharesMinimum Investment
Aye Finance IPO Details
| Bidding dates | Minimum investment | Lot size | Price range |
|---|---|---|---|
| 9 Feb ‘26 - 11 Feb ‘26 | ₹14,152 | 116 | ₹122 - ₹129 |
| Issue size | IPO doc | Tentative allotment date | Tentative listing date |
|---|---|---|---|
| 1,010 Cr | RHP PDF | 12 Feb ‘26 | 16 Feb ‘26 |
| Face value |
|---|
| 2 |
About Aye Finance
Founded in
1993
MD/CEO
Sanjay Sharma
Parent organisation
Aye Finance Ltd
Strengths & Risks of Aye Finance
Highlights
Deep dive
AUM grew at 42.60% CAGR to ₹6,027.62 Crores
Return on Equity surged to 12.12% in FY25
Repeat loans formed 45.37% of FY25 disbursements
Gross NPA ratio increased to 4.85% by Sep 2025
Negative operating cash flow of ₹811.78 Crores in FY25
Exceptionally high employee attrition rate of 64.56% in FY25
Aye finance limited leverages a unique, cluster-based underwriting model to drive growth by lending to underserved micro-enterprises across India. However, the company faces significant headwinds from deteriorating asset quality and a rising trend of non-performing loans.
Strengths
Risks
As a leading NBFC focused on micro-scale MSMEs, the company has demonstrated strong growth, with Assets Under Management (AUM) growing at a CAGR of 42.60% from ₹2,721.55 Crores in FY23 to ₹5,533.90 Crores in FY25, and reaching ₹6,027.62 Crores as of September 30, 2025.
The company maintains a well-diversified geographical presence, being the most diversified among its peers, with its top 5 states contributing 57.00% to AUM and no single state accounting for more than 15.77% as of September 30, 2025, which mitigates concentration risk.
Aye Finance utilizes a unique 'business cluster' based underwriting methodology for over 70 business clusters, enhanced by data science models, allowing it to effectively assess and lend to MSMEs with limited documentation, a key competitive advantage.
The company has demonstrated improving profitability, with Return on Average Total Assets (RoTA) increasing from 1.47% in FY23 to 3.13% in FY25, while Return on Equity (RoE) surged from 5.46% to 12.12% over the same period.
The company exhibits strong customer stickiness, with repeat loans to existing customers growing to constitute 45.37% of total disbursements in FY25, up from 25.66% in FY23, indicating successful customer retention and a stable, growing business pipeline.
Leveraging a 'phygital' model, the company has achieved significant operational efficiency, with 98.84% of loan disbursements being digitally signed and over 93.45% of active loans managed via Automated Clearing House (ACH) mandates as of September 30, 2025.
The company has access to a diversified lender base of 82 different lenders as of September 2025, and has managed to reduce its average cost of borrowings from 11.80% in FY23 to 11.57% in FY25, ensuring cost-effective financing.
The company is led by an experienced management team and backed by marquee investors including Elevation Capital, CapitalG Entities, British International Investment Plc, and Alpha Wave India, which provides strong governance and strategic oversight.
Asset quality is a growing concern as the company's Gross NPA ratio has steadily increased from 2.49% as of March 31, 2023, to 4.21% in FY25, and further to 4.85% as of September 30, 2025, indicating a rising risk of non-payment from its borrowers.
The company has a significant exposure to higher-risk unsecured loans, which constituted 37.97% of its total AUM, or ₹22,888.82 Crores, as of September 30, 2025, posing a greater risk of recovery in case of default compared to its secured portfolio.
The company has consistently generated negative cash flows from operating activities, which worsened from ₹(720.39) Crores in FY23 to ₹(811.78) Crores in FY25, indicating a heavy reliance on financing activities to sustain its operations and loan disbursements.
A potential asset-liability mismatch exists, with the average maturity of its assets at 29.23 months being longer than its borrowings tenor of 23.43 months as of September 30, 2025. This exposes the company to liquidity and interest rate risks.
The company experiences exceptionally high employee attrition, with the rate reaching 64.56% in FY25 and 65.53% in the six months ended Sep 30, 2025. This high turnover could disrupt operations, increase costs, and negatively impact service quality.
Operations are subject to regulatory scrutiny from the RBI, which conducted an inspection in FY23 and sought clarifications on internal audit coverage and underwriting. Furthermore, statutory auditors have issued remarks on the company's audit trail software in both FY24 and FY25.
Aye Finance Financials
*All values are in Rs. Cr
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Application Details of Aye Finance IPO
| Apply as | Price band | Apply Range | Lot size |
|---|---|---|---|
| Regular | ₹122 - 129 | Upto ₹2 Lakh | 116 |
| High Networth Individual | ₹122 - 129 | ₹2 - 5 Lakh | 116 |
For Aye Finance IPO, eligible investors can apply as Regular.