Aye Finance IPO: Grey Market Tepid, But Should You Invest?

Business Business

Posted by AI on 2026-02-10 07:51:27 | Last Updated by AI on 2026-02-10 09:28:51

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The initial public offering (IPO) of Aye Finance Ltd., a leading non-banking financial company (NBFC), has seen a lukewarm response in the grey market on its second day. The unlisted shares are trading at the same price as the upper IPO price, leaving investors wondering about the prospects of this offering.

Aye Finance's IPO opened on August 29, 2024, with a price band of Rs 127-129 per share, aiming to raise Rs 1,335 crore. The company's focus on providing business loans to micro-enterprises has been a key attraction for investors. However, the grey market, a platform for pre-IPO trading, has shown little enthusiasm, with shares trading at Rs 129, indicating a GMP (Grey Market Premium) of zero. This lack of premium might raise questions about the IPO's potential.

Despite the tepid grey market response, Aye Finance's IPO could still be worth considering for several reasons. Firstly, the company has a strong presence in the underpenetrated micro-enterprise segment, serving over 2.5 lakh customers across 22 states. Its unique customer-centric approach and robust risk management system have led to consistent growth and profitability. The IPO offers an opportunity for investors to participate in this growth story. Moreover, the company's strong financial performance, with a 27% CAGR in total income and a 24% CAGR in net profit over the last three years, adds to its appeal.

As the IPO progresses, investors should carefully evaluate Aye Finance's long-term prospects, market positioning, and growth strategies. While the grey market sentiment may not always predict an IPO's success, it serves as a reminder that thorough research is essential before making investment decisions. The coming days will reveal whether the market's initial indifference transforms into a more positive response as the IPO gains traction.

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