Aye Finance IPO Opens: Price Band, GMP, Subscription Details and Investment Outlook Explained

The initial public offering of Aye Finance has opened for subscription, giving investors an opportunity to participate in India’s expanding MSME lending segment. The non-banking financial company’s IPO will remain open from February 9 to February 11, with shares expected to list on both the Bombay Stock Exchange and the National Stock Exchange of India on February 16.

The IPO is a book-built issue valued at ₹1,010 crore, comprising a fresh issue of 5.50 crore shares worth ₹710 crore along with an offer for sale of 2.33 crore shares aggregating to ₹300 crore. The price band has been fixed between ₹122 and ₹129 per share. Retail investors need to apply for a minimum lot of 116 shares, translating to an investment of ₹14,964 at the upper end of the price band. The share allotment is expected to be finalised on February 12.

According to market data, the latest grey market premium (GMP) remains at zero, indicating expectations of a relatively flat listing in the absence of strong speculative demand. Analysts note that GMP trends can shift closer to listing depending on subscription levels and broader market sentiment.

Founded in 1993, Aye Finance operates as a non-banking financial company focused on providing secured and unsecured loans to micro and small businesses. Its product portfolio includes working capital loans, property-backed financing, and mortgage-based lending solutions tailored for enterprises in manufacturing, trading, and services sectors. The company currently serves more than 5.8 lakh active customers across 18 states and three union territories, positioning itself as a major player in small-ticket MSME financing.

Brokerage firms tracking the IPO highlight the structural growth potential of the MSME lending space in India. Rising credit demand from small businesses and increasing formalisation of the economy have created opportunities for specialised NBFCs to expand their footprint. Industry observers say Aye Finance’s focus on granular lending and underserved borrowers could support long-term growth, especially as traditional banking channels often struggle to cater to micro enterprises.

Market participants also point out that the NBFC sector has demonstrated resilience despite economic cycles, benefiting from improved digital lending platforms, risk assessment models, and expanding rural and semi-urban outreach. Aye Finance’s strategy of combining secured and semi-secured lending products may help manage risk while tapping into high-growth segments of the credit market.

However, investors are also advised to evaluate factors such as asset quality trends, competition from fintech platforms, and macroeconomic conditions that could influence loan demand and repayment patterns. While brokerages see potential in the company’s positioning, subscription decisions ultimately depend on individual risk appetite and long-term investment goals.

With the IPO attracting attention from investors tracking the MSME financing theme, the next few days will be crucial in determining demand across retail, institutional, and high-net-worth investor categories. The listing performance will likely depend on subscription momentum, market conditions, and investor confidence in the broader financial services sector.