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Aye Finance IPO Closes Today; Subscription Reaches 16% as Investors Weigh High Churn vs. MSME Growth

Aye Finance IPO Closes Today; Subscription Reaches 16% as Investors Weigh High Churn vs. MSME Growth

The subscription window for the Aye Finance IPO officially closes today at 5:00 PM IST. As of 10:00 AM, the issue has been subscribed approximately 0.16 times (16%) overall. The retail segment is showing the most movement at 0.49x, while institutional (QIB) and non-institutional (NII) categories remain significantly undersubscribed.

The IPO is a combination of a fresh issue of ₹710 crore and an Offer for Sale (OFS) of ₹300 crore. The funds from the fresh issue are slated to augment the company's capital base to meet future growth requirements. Despite its specialized niche in providing small-ticket business loans (average ₹1.8 lakh) to underserved micro-enterprises, the company is facing scrutiny over its high operational costs and a 65% employee attrition rate—a significant "red flag" for a business that relies heavily on manual collections and underwriting.

The Grey Market Premium (GMP) as of today, February 11, is trading at ₹0, indicating that the market currently expects a flat listing at the issue price of ₹129.

Final Day IPO Status & Timetable

Feature Details
Price Band ₹122 – ₹129 per share
Today's Status Final Day (Closing at 5:00 PM)
Overall Subscription ~0.16x (Current)
Lot Size 116 Shares (Min. Investment ₹14,964)
Allotment Date February 12, 2026 (Tomorrow)
Tentative Listing February 16, 2026 (BSE & NSE)

Important Note for Investors

Asset Quality Concerns: Investors should note that Aye Finance's Gross NPA (Non-Performing Assets) ratio has risen to 4.85% as of September 2025, up from 2.49% in 2023. This upward trend in bad loans is a critical point for risk-averse investors.

The "People" Risk: Analysts from firms like Deven Choksey Research have highlighted the 65% staff churn as a major operational risk. In a "people-heavy" business like MSME lending, high turnover can lead to weaker credit discipline and increased fraud risk.

Valuation Advantage: At the upper price band, the stock is valued at a 1.3x Adjusted Price-to-Book (P/B) ratio, which is a 20–30% discount compared to listed peers like Five-Star Business Finance. This discount reflects the market's current risk assessment of the firm.

Anchor Backing: Despite the slow public response, the company raised ₹454.49 crore from 19 anchor investors on February 8, providing a substantial institutional cushion for the issue.

Market Sentiment: Today is a busy day for the markets as the Fractal Analytics IPO is also live, potentially diverting some liquidity away from the NBFC sector.