The issue comprises a fresh issue of Rs 710 crore and an offer for sale of Rs 300 crore by existing investors. At the upper end of the price band, the company is valued at a pre-issue market cap of around Rs 3,184 crore. The minimum application size for retail investors is 116 shares, translating into an investment of Rs 14,964 at the upper band.
Aye Finance IPO GMP
Aye Finance’s IPO is entering the market with a flat grey market premium, currently hovering around 0%. The lack of grey market enthusiasm reflects a more measured investor approach towards NBFC listings, especially those with exposure to micro and small enterprises, even though the company has demonstrated consistent profitability.Incorporated in 1993, Aye Finance is a non-banking financial company in the middle-layer category, focused on providing secured and unsecured business loans to micro-scale MSMEs. Its loan products include hypothecation loans, mortgage-backed loans and ‘Saral’ property loans, catering primarily to working capital and business expansion needs of enterprises engaged in manufacturing, trading, services and allied sectors.
The company follows a branch-led, technology-enabled operating model, combining local market understanding with data-driven credit assessment to underwrite borrowers with limited formal credit histories.
Financial performance
Financially, the company has posted steady growth over the past few years. Total income rose to Rs 1,621 crore in FY25 from Rs 724 crore in FY23, while net profit increased sharply to Rs 175.25 crore in FY25 from Rs 39.87 crore two years earlier.Profitability metrics have remained healthy, with EBITDA margins above 45% in FY25. Return on equity for the year stood at around 12.1%, reflecting a balance between growth and capital efficiency
Brokerage views on the IPO remain mixed-to-cautious. Swastika Investmart has assigned a “neutral” rating to the issue, pointing to reasonable valuations but highlighting sector-specific risks.
“Aye Finance is implying a P/E multiple of around 14x based on FY25 earnings, which appears reasonably priced compared with some listed NBFC peers. Fundamentals are solid with consistent revenue and profit growth, but the business carries inherent risks due to its exposure to micro enterprises and unsecured lending,” the brokerage said in its note.
Analysts at Swastika added that the IPO may be suitable for long-term investors who have conviction in MSME credit growth and are comfortable with moderate NBFC credit risk, rather than those looking for short-term listing gains. The flat grey market premium, they said, reinforces expectations of a largely fundamentals-driven response rather than speculative interest.
Within the peer group, Aye Finance compares with listed MSME-focused lenders such as SBFC Finance and Five-Star Business Finance. While its valuation multiple is lower than some peers, its return ratios are also more moderate, reflecting its loan mix and geographic spread.
The company does not have an identifiable promoter under current regulations, which analysts say places greater emphasis on governance standards and management execution.
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