Aye Finance IPO: Rs 1,010 Cr Issue Opens Feb 9 Amid Mixed Financials

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AuthorIshaan Verma|Published at:
Aye Finance IPO: Rs 1,010 Cr Issue Opens Feb 9 Amid Mixed Financials
Overview

Aye Finance, backed by Elevation Capital and Alphabet's CapitalG, is set to launch its ₹1,010 crore IPO on February 9. The public issue comprises a ₹710 crore fresh issue and a ₹300 crore offer-for-sale. While net profit declined 40% for the six months ended September 2025, the NBFC reported a 15.6% rise in net interest income. Proceeds will bolster its capital base for future growth, targeting India's underserved MSME sector.

IPO Details

Aye Finance, a Gurgaon-based non-banking financial company (NBFC) serving micro, small, and medium enterprises (MSMEs), will open its initial public offering (IPO) on February 9. The ₹1,010 crore issue comprises a fresh issuance of shares worth ₹710 crore and an offer-for-sale (OFS) of ₹300 crore by five existing shareholders. The anchor book opens on February 6, with the public subscription closing on February 11. Trading on the exchanges is slated to commence on February 16.

Financial Performance

The company's financial results present a mixed picture. For the six-month period ending September 2025, Aye Finance reported a profit of ₹64.6 crore, a 40% decrease from ₹107.8 crore in the prior fiscal's comparable period. However, its net interest income saw a 15.6% increase, rising to ₹475 crore from ₹411 crore. For the fiscal year ended March 2025, profit stood at ₹175.3 crore, a marginal 2% growth over the previous year, while net interest income surged by 37.9% to ₹858 crore.

Investor Backing and Use of Proceeds

Aye Finance boasts a strong investor base, including global names like Elevation Capital, Alphabet (via CapitalG), LGT Capital, and British International Investment. Elevation Capital is the largest shareholder with a 16.03% stake. The funds raised from the fresh issue will be utilized to augment the company's capital base, supporting its growth ambitions and future capital requirements as its assets under management expand. As of September 2025, Aye Finance reported assets under management of ₹6,027.6 crore and 5.86 lakh active customers.

Market Position

The NBFC positions itself as a leading provider of business loans to micro-scale enterprises in India. It competes with listed peers such as SBFC Finance and Five-Star Business Finance. The IPO is managed by Axis Capital, IIFL Capital Services, JM Financial, and Nuvama Wealth Management.

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