1. Business Snapshot: Lending to the "Missing Middle"
Founded in 1993 and based in Gurugram, Aye Finance is an NBFC designed for the micro-scale MSME segment. They use a proprietary "cluster-based" underwriting model to serve business owners who lack formal documentation.
Marquee Backing: Rare for an NBFC, it is supported by CapitalG (Alphabet's growth fund), Elevation Capital, and British International Investment (BII).
Network: As of September 2025, they operate 586 branches across 21 states and union territories, serving nearly 6 lakh active customers.
2. Final IPO Timelines & Live Details
The window closes today at 5:00 PM IST. Ensure your UPI mandates are approved before the banking cutoff.
| Event / Detail | Status / Date |
|---|---|
| Bidding Period | Feb 9 – Wednesday, Feb 11, 2026 |
| Price Band | ₹122 to ₹129 per share |
| Min. Retail Investment | ₹14,964 (116 Shares) |
| Total Issue Size | ₹1,010 Crore (Fresh: ₹710 Cr |
| Basis of Allotment | Thursday, February 12, 2026 |
| Refunds / Credit | Friday, February 13, 2026 |
| Listing Date | Monday, February 16, 2026 |
3. Subscription Update (Day 3 Live Status)
As of midday on the final day, the issue is seeing the typical surge from institutional and large investors:
Retail Portion: Subscribed ~0.47x (Leading the participation from individual investors).
QIB Portion: Currently at ~0.13x (Expected to see massive bids in the final hours from mutual funds).
NII Portion: Subscribed ~0.02x (Muted demand from high-net-worth individuals).
Overall Status: Booked ~16% so far. Institutional coverage is the key factor to watch before the 5 PM close.
4. Financial Health: Rapid Growth vs. Asset Quality
Aye Finance has posted impressive topline growth, though bottom-line margins have softened recently:
Revenue Momentum: Income jumped 40% from ₹1,071 Cr (FY24) to ₹1,505 Cr (FY25).
H1 FY26 Pulse: Reported a net profit of ₹64.6 crore for the 6 months ending Sept 2025.
Asset Quality: Gross NPA (Non-Performing Assets) has risen from 2.5% (FY23) to 4.85% (Sept 2025), reflecting the challenges of micro-lending in the current environment.
5. Grey Market Premium (GMP) Today (Feb 11, 2026)
Current GMP: ₹0 (Flat).
Market Outlook: The "Nil" premium indicates that the market is currently pricing a listing at par (around the issue price of ₹129). This is common for mid-sized NBFCs where long-term fundamentals are more important than short-term "listing pops."
6. Investment Analysis: Pros & Cons
Strengths:
Alphabet & Google Support: High-quality corporate governance and investor pedigree.
Tech-Driven Efficiency: "AyeScore" allows them to maintain a lower cost of acquisition than traditional lenders.
Valuation Advantage: Priced at an adjusted P/B ratio of ~1.3x, which is a 20-30% discount compared to several listed peers.
Risks:
High Attrition: Employee turnover of ~65% is a red flag for a "people-heavy" collections business.
Unsecured Exposure: A large portion of their book is sensitive to local economic shocks.
7. Conclusion: The Final Verdict
Aye Finance is a fundamental bet on the formalization of India's micro-enterprises. While the flat GMP may not excite short-term traders, the reasonable valuation and blue-chip backing make it an interesting "buy and hold" candidate for diversified financial portfolios.