Microlending platform Aye Finance has fixed a price band of ₹122–129 per equity share for its upcoming initial public offering (IPO), following the filing of its red herring prospectus (RHP) with the capital markets regulator.
According to the RHP, the public issue will open for subscription on February 9 and close on February 11, while the anchor book will open on February 6. At the upper end of the price band, Aye Finance is expected to command a valuation of around $352 million.
IPO Structure and Use of Proceeds
The IPO will comprise a fresh issue of shares worth ₹710 crore and an offer for sale (OFS) of up to ₹300 crore, taking the total issue size to ₹1,010 crore.
Shares will be sold through the OFS by co-founder Vikram Jetley and existing investors including Alpha Wave India I LP, MAJ Invest Financial Inclusion Fund II, CapitalG LP, and LGT Capital Invest Mauritius PCC (Cell E/VP).
The company had received approval from Securities and Exchange Board of India (SEBI) in April last year.
Bookrunners and Listing
The IPO is being managed by Axis Capital, IIFL Capital, Nuvama, and JM Financial as book-running lead managers. The company’s shares are proposed to be listed on the BSE and NSE.
Shareholding Structure
As per the RHP, Elevation Capital is the largest external shareholder with a 16.03% stake, followed by LGT Capital at 13.99%. Alpha Wave owns 11.10% of Aye Finance.
Financial Performance
On the financial front, Aye Finance reported 21.5% year-on-year growth in revenue from operations, which rose to ₹407 crore in Q1 FY26 from ₹335 crore in Q1 FY25.
However, the company’s profit declined 50% to ₹30.5 crore during the quarter, even as it posted a positive EBITDA of ₹172 crore, reflecting continued investments in growth and portfolio expansion.
Why It Matters
Aye Finance’s IPO comes at a time when MSME-focused lending platforms are gaining renewed attention from public market investors. The listing will be closely watched as a barometer for fintech profitability, asset quality, and investor appetite in India’s small-business credit segment.
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