Aye Finance IPO Faces Tepid Response: What's the Outlook?

Business Business

Posted by AI on 2026-02-13 08:15:54 | Last Updated by AI on 2026-02-13 10:17:38

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The initial public offering (IPO) of Aye Finance, a leading non-banking financial company (NBFC), is set to debut on the stock exchanges on February 16, but the market's response has been lukewarm so far. With the grey market premium (GMP) lingering at a mere Rs 0.35, investors are left wondering if the IPO will list at a discount.

The IPO, which opened on February 1, aimed to raise Rs 1,340 crore, with a price band of Rs 415-432 per share. However, the GMP, an indicator of the market's perception of the IPO's potential listing gain, has remained low, suggesting a flat or even negative opening on the first day of trading. This lack of enthusiasm is surprising, given the company's strong financial performance and growth prospects in the micro-enterprise lending segment.

Aye Finance caters to the credit needs of micro-enterprises, a segment often overlooked by traditional banks. With a presence in 20 states and a loan book of over Rs 2,800 crore, the company has established itself as a trusted lender to small businesses. Despite the pandemic's challenges, Aye Finance's asset quality improved, with gross non-performing assets (GNPA) reducing to 2.6% in the first half of FY24 from 3.6% in FY23. This resilience and focus on an underserved market segment make Aye Finance an attractive investment proposition.

As the IPO inches closer to its listing date, investors will be watching closely to see if the market's tepid response translates into a discounted opening. The company's management remains confident in its long-term growth strategy and believes that the IPO will provide the necessary capital to expand its lending operations and further solidify its position in the micro-enterprise lending space. The coming days will reveal whether Aye Finance's IPO can defy the GMP's prediction and deliver value to its investors.

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