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IPO · Financial Services

Aye Finance files IPO for ₹1,010 crore

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Date
Company
Aye Finance
What it does
MSME small-ticket business loans
Kind
IPO
Amount
₹1,010 crore
Stage
IPO
Founded
2014
Sector
Financial Services

What they do

Aye Finance provides small-ticket business loans to micro, small and medium enterprises (MSMEs) across manufacturing, trading and services

What happened

The company filed its red herring prospectus for a ₹1,010 crore initial public offering, with a fresh issue of up to ₹710 crore and an offer for sale of up…

Why it matters

The IPO opens February 9 and closes February 11, with a price band of ₹122-129 per share, valuing the company at about ₹3,183 crore

The details

  • Aye Finance filed its red herring prospectus (RHP) for an initial public offering (IPO) of up to ₹1,010 crore.
  • The public issue includes a fresh issue of up to ₹710 crore and an offer for sale (OFS) of up to ₹300 crore.
  • The price band is set at ₹122-129 per share, with anchor bidding on February 6.
  • The IPO opens on February 9 and closes on February 11.
  • At the upper price band, the company is valued at about ₹3,183 crore (approximately $352 million).
  • The price-to-earnings (P/E) ratio is 13.81 based on FY25 financials at ₹129 per share.
  • OFS sellers include cofounder Vikram Jetley, Alpha Wave India I LP, MAJ Invest Financial Inclusion Fund II, CapitalG LP, and LGT Capital Invest Mauritius PCC with Cell E/VP.
  • Proceeds from the fresh issue will be used to increase the Tier I capital base for future capital requirements from business growth.

The bigger picture

  • The fresh issue size is 19.7% lower than the draft red herring prospectus (DRHP), indicating a revised fundraising plan.
  • Net profit declined 40% to ₹64.6 crore in H1 FY26 from ₹106.8 crore in H1 FY25, while operating revenue rose 21.8% to ₹843.5 crore.
  • The IPO allows existing investors like Elevation Capital (16.03% stake) to remain invested, while others like Alpha Wave and CapitalG partially exit.
  • The company's active customer base of 5.86 lakh across 18 states and 3 Union Territories shows its reach in the MSME lending space.

About the business

  • Aye Finance offers small-ticket business loans to micro, small and medium enterprises (MSMEs).
  • It provides working capital and business expansion loans against hypothecation of working assets or property security.
  • The company serves manufacturing, trading, service and allied agriculture sectors.
  • It uses a cluster-based credit assessment model with AI algorithms for risk assessment without traditional documents.
  • As of September 2025, its assets under management (AUM) stood at ₹6,027.62 crore.
  • The company operates across 18 states and 3 Union Territories with an active customer base of 5.86 lakh.

What happens next

  • Use fresh issue proceeds to increase Tier I capital base for future capital requirements from business growth.

The deal

Type
IPO

Investors

  • Elevation Capital V (existing) — Largest institutional shareholder with 16.03% stake, not selling in OFS.
  • LGT Capital Invest Mauritius PCC with Cell E/VP (existing) — Second largest shareholder with 13.99% stake, selling up to ₹30 crore in OFS.
  • Alpha Wave India I LP (seller) — Holds 11.1% stake, selling up to ₹30 crore in OFS.
  • CapitalG LP (seller) — Holds 10.16% stake, selling up to ₹82.5 crore in OFS.
  • MAJ Invest Financial Inclusion Fund II (seller) — Selling up to ₹139.7 crore in OFS.

Founders

  • Vikram Jetley, Cofounder
  • Sanjay Sharma, Cofounder

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