Aye Finance files RHP, reduces IPO size to Rs 1,010 crore
03 Feb 2026, 10:56 PMMSME lender Aye Finance's initial public offering (IPO) is set to open for bidding next week, February 9-11.
Team Head&Tale
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MSME lender Aye Finance has reduced the size of its initial public offering (IPO) that is set to open for bidding next week, February 9-11.
The Gurugram-based NBFC has reduced the IPO size from Rs 1,450 crore stated in its draft red herring prospectus (DRHP) to Rs 1,010 crore – a combination of fresh issuance of equity shares worth Rs 710 crore, and an offer-for-sale of Rs 300 crore, according to the RHP (red herring prospectus) filed by Aye Finance.
The selling shareholders, include Alpha Wave India, MAJ Invest Financial Inclusion Fund, Alphabet-backed CapitalG, LGT Capital, and Vikram Jetley (who co-founded Aye Finance, along with Sanjay Sharma).
The Elevation Capital-backed company – which had originally set the OFS at Rs 565 crore, as per its DRHP filed in December 2024 – will see Alpha Wave selling shares worth Rs 30 crore; MAJ Invest (Rs 139.8 crore); CapitalG (Rs 82.5 crore); LGT Capital (Rs 30 crore); and Vikram Jetley (Rs 17.7 crore).
The company’s largest stakeholder Elevation Capital with 16.03% is not selling its shares in the IPO. LGT Capital owns 13.99%, CapitalG (13.14%), Alpha Wave India (11.1%), British International Investment (9.42%), and A91 Emerging Fund (9.14%). Aye Finance CEO Sanjay Sharma holds 2.86% stake in the company.
The NBFC received the approval from the Securities and Exchange Board of India (SEBI) for its IPO in April 2025, and it has filed the RHP now – which is close to the end of the one-year window available to launch the issue.
Aye Finance's public offering will be a test for the broader matured fintech non-banking financial companies (NBFCs) as private market valuations, unsecured loan are forcing fintech lenders to rethink their IPO plans. The Head and Tale recently did a deep dive into it.
The Gurugram-based company, which focuses on providing financial services to micro, small, and medium enterprises (MSMEs). It offers secured loans against property and working assets, as well as unsecured business loans.
For the six month period (April-September 2025), Aye Finance recorded Rs 843.5 crore in revenue from operations, compared to Rs 692 crore in the same period during previous fiscal. Interest income increased to Rs 733.8 crore during Apr-Sep 2025, against Rs 640 crore during Apr-Sep 2024 period.
Net profit stood at Rs 64.6 crore for six months period ended September 2025, which dropped from Rs 108 crore reported in the same period previous fiscal.
The company's asset under management grew to Rs 6,028 crore as of September 30, 2025 – from Rs 4,980 crore as of September 30, 2024.
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