Aye Finance IPO GMP 2026: Aye Finance Limited IPO Review
Aye Finance IPO Review 2026: GMP, Financials, Risks & Long-Term Outlook
If you’re searching for Aye Finance IPO, chances are you’ve seen the headline: “Google-backed NBFC hits the Mainboard.”
But does backing from CapitalG (Alphabet’s investment arm) automatically make this IPO a smart bet?
This detailed, neutral, and educational review of the Aye Finance Limited IPO covers:
- IPO dates, price band & lot size
- Latest Aye Finance IPO GMP
- Business model explained simply
- Financial performance (FY23–H1 FY26)
- Rising NPA concerns
- Peer comparison
- Who should apply (and who shouldn’t)
Let’s break it down properly.
About Aye Finance Private Limited
Aye Finance Limited (often searched as Aye Finance Private Limited) is a Gurgaon-based Non-Banking Financial Company (NBFC) focused on lending to India’s “Missing Middle.”
Who is the “Missing Middle”?
These are micro and small enterprises that:
- Don’t have formal credit history
- Don’t file consistent tax returns
- Lack collateral
- Are ignored by traditional banks
Examples include:
- Kirana stores
- Small manufacturers
- Repair workshops
- Traders
- Service providers
Aye Finance uses data-driven underwriting and a cluster-based lending model to serve this segment.
Key Operating Metrics
- 5.8 lakh active customers
- Assets Under Management (AUM): ₹6,027 crore
- Presence across multiple Indian states
- Backed by institutional investors including CapitalG
Aye Finance IPO Details (Mainboard Issue)
The Aye Finance Limited IPO is a Mainboard IPO listing on:
- Bombay Stock Exchange
- National Stock Exchange of India
IPO Snapshot
Fresh Issue vs OFS — Why It Matters
- ₹710 Cr Fresh Issue → Goes to the company (growth capital, lending expansion).
- ₹300 Cr OFS → Existing investors partially exit.
OFS is not necessarily negative — but it signals partial profit booking by early investors.
Aye Finance IPO GMP Today
As of early February 2026:
👉 Aye Finance IPO GMP: ₹5
At the upper band of ₹129:
- Expected Listing Price ≈ ₹134
- Premium ≈ 3.88%
What Does This Indicate?
The Aye Finance Limited IPO GMP suggests:
- Market sentiment is cautious
- Not a blockbuster listing candidate
- Seen as a steady NBFC play rather than a momentum trade
GMP can change daily — investors should track real-time updates before applying.
Business Model Explained Simply
1️⃣ Cluster-Based Lending
Instead of evaluating a single borrower in isolation, Aye Finance studies entire industry clusters.
Example:If lending to shoe manufacturers in Agra, they assess:
- Raw material supply chains
- Demand cycles
- Repayment behavior within cluster
- Local market health
This reduces dependency on traditional credit scoring.
2️⃣ AI & Cash Flow Analysis
Many borrowers lack formal income proofs.
Aye Finance uses:
- AI-driven underwriting
- Behavioral repayment data
- Cash flow analytics
This helps expand credit access — but increases exposure to economic cycles.
Financial Performance: Growth vs Risk
Here’s where investors must pay attention.
Revenue Growth
Revenue grew nearly 40% from FY24 to FY25 — impressive for an NBFC.
This shows:
- Strong loan book expansion
- Rising customer base
- Increased disbursements
Profit Slowdown
However, H1 FY26 profit dropped sharply compared to FY25 run rate.
Main reason:
- Higher provisioning
- Rising credit costs
Rising GNPA — The Red Flag
Gross NPA rose from:
- 2.5% (FY23)→ 4.9% (H1 FY26)
For an unsecured-heavy NBFC, this trend is critical.
If economic stress continues, NPAs could rise further.
Risk Factors in Aye Finance Limited IPO
1️⃣ High Unsecured Loan Exposure
Nearly 38% of loans are unsecured.
Unsecured portfolios are:
- Higher margin
- Higher risk
- Sensitive to economic slowdowns
2️⃣ Micro Enterprise Sensitivity
Micro businesses are first impacted during:
- Inflation spikes
- Demand slowdown
- Credit tightening
3️⃣ Rising Credit Costs
Increasing provisioning reduces profitability.
4️⃣ No Promoter Structure
Aye Finance Private Limited is professionally managed.
While governance can improve under this model, there is no promoter holding acting as anchor confidence.
Peer Comparison
Comparable NBFCs:
- SBFC Finance Limited
- Five-Star Business Finance Limited
- Veritas Finance Limited
Valuation Check
At approximately 14x P/E (upper band basis):
- Reasonable compared to peers
- Not overly expensive
- Not deeply undervalued
Investors should compare:
- GNPA levels
- ROA & ROE
- Loan mix
- Cost of funds
Strengths of Aye Finance IPO
✔ Strong revenue growth
✔ Institutional investor backing
✔ Tech-enabled underwriting
✔ Large addressable market
✔ Financial inclusion theme
Weaknesses to Monitor
⚠ Rising NPAs⚠ Profit slowdown in H1 FY26⚠ High unsecured exposure⚠ Moderate GMP
Should You Apply?
Suitable For:
- Long-term investors (1–3 years)
- Those bullish on financial inclusion
- Investors comfortable with NBFC risk cycles
Not Suitable For:
- Listing gain hunters
- Conservative investors avoiding unsecured lending
- Those seeking low-volatility stocks
Long-Term Outlook
India’s MSME credit gap remains massive.
If Aye Finance can:
- Control NPAs
- Improve collection efficiency
- Maintain underwriting discipline
It could benefit from:
- Financial inclusion tailwinds
- Digital credit expansion
- Structural growth in small business financing
But if credit quality deteriorates further, profitability may remain under pressure.
How to Apply for Aye Finance IPO
If you're planning to invest in the Aye Finance IPO, here is a simple, beginner-friendly guide explaining how to apply through different methods.
The Aye Finance Limited IPO is a Mainboard issue listing on:
You can apply using:
- UPI through your stock trading app (most popular method)
- ASBA through Net Banking
Final Neutral Verdict
The Aye Finance IPO is neither a hype-driven multibagger nor a weak offering.
It is:
- A growth-oriented NBFC
- Backed by strong institutional investors
- Operating in a high-potential segment
But:
- Rising GNPA is a serious monitorable factor
- Profit momentum needs improvement
- Listing gains may be limited
This IPO suits investors with patience and understanding of NBFC risk cycles.
FAQs
1. What is Aye Finance IPO GMP today?
Aye Finance IPO GMP is around ₹5, indicating a 3–4% premium over the issue price.
2. When does Aye Finance IPO open?
It opens on February 9, 2026 and closes on February 11, 2026.
3. Is Aye Finance IPO SME or Mainboard?
It is a Mainboard IPO listing on BSE and NSE.
4. What is the lot size?
116 shares (minimum investment ₹14,964).
5. Who are the investors in Aye Finance Private Limited?
CapitalG (Alphabet’s investment arm), Elevation Capital, and LGT Capital.
Disclaimer
Investments in the securities market are subject to market risks. Read all related documents carefully before investing. IPO data sourced from RHP of Aye Finance Limited.
