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Aye Finance IPO will open next week, through which the company will raise ₹1,010 crore. NBFC has kept its price band at ₹122 to ₹129. The issue includes both fresh issue and offer for sale.

IPO Update: The IPO of non-banking finance company Aayi Finance is going to hit the stock market next week. This company, which provides finance to mid and small businesses, has been present in the market for a long time and is now preparing to raise capital through public issue. The company has fixed the price band of its IPO at ₹122 to ₹129 per share. Aye Finance is aiming to raise a total of ₹1,010 crore through this issue, which is being eyed by investors.

Complete information about issue size and structure

The IPO of Aayi Finance is divided into two parts. This includes a fresh issue of ₹710 crore, under which about 5.5 crore new equity shares will be issued. Apart from this, an offer for sale (OFS) worth up to ₹ 300 crore has also been made, in which about 2.33 crore shares will be sold by the existing shareholders. The proceeds from the fresh issue will go directly to the company, while the proceeds from OFS will go to the selling shareholders.

According to the Red Herring Prospectus (RHP), big investors like Alpha Wave India, MAJ Invest Financial Inclusion Fund II, CapitalG and LGT Capital Invest Mauritius PCC Corporate are selling shares under the OFS. Apart from this, Vikram Jaitley is involved in the Offer for Sale as an individual shareholder. This makes it clear that early investors are taking a partial exit, while the company wants to raise capital from the market for the next phase of growth.

What is the business model of the company

Aayi Finance is an NBFC, which provides loans to small and medium businesses across the country. The company’s focus is on those entrepreneurs who are not able to easily get loans through the traditional banking system. Income Finance mainly provides loans to run and expand the business. These loans are given against the guarantee of machinery, stock and other working assets or against the mortgage of property.

The company provides finance to businesses to manufacturing, trading, service sector and allied agriculture. Due to this diversified portfolio, the company’s risk does not depend on one sector. As of September 30, 2025, Aye Finance had more than 5.86 lakh active customers across 18 states and 3 union territories. The company’s Assets Under Management (AUM) had reached ₹6,027.62 crore during the same period, which shows its strong growth track record.

IPO timeline and important dates

The IPO of Aayi Finance will open for investment on Monday 9 February 2026 and will close on Wednesday 11 February 2026. The bidding process for anchor investors has been scheduled for Friday, 6 February 2026, a day before the opening of the issue. The allotment of shares is likely to be finalized on Thursday 12 February. After this, the company’s shares can be listed on the National Stock Exchange (NSE) and BSE on Monday 16 February 2026.

This timeline is important for investors who are planning to invest money in IPOs with listing gains or long term investment strategy.

Lot size and retail investment required

Investors can bid for a minimum of one lot in Aye Finance’s IPO. 116 shares are placed in one lot. At the upper price band of ₹129, a retail investor will have to invest at least ₹14,964 for one lot. After this the investment can be made in multiples of the same.

The company has also allotted shares in the IPO as per the prescribed categories. 75 per cent of the net offer is reserved for qualified institutional investors (QIBs). Whereas 15 percent share has been kept for non-institutional investors (NIIs) and 10 percent share has been kept for retail investors. This indicates that the company expects strong support from large institutional investors.

Aye Finance IPO GMP in the gray market

The movement in the gray market has also intensified regarding Income Finance IPO. On Thursday, unlisted shares of the company were seen trading around ₹134 in the gray market. This is about ₹5 more than the upper price band of the IPO, i.e. a premium of about 4 percent. Although the gray market premium does not guarantee the official success of any IPO, it does reflect the initial sentiment of investors.

Fluctuations in GMP may be seen even before listing, hence investors should avoid taking decisions on this basis alone.

How will the company use the funds?

According to the red herring prospectus, the company will use the proceeds from the fresh issue to strengthen its capital base. This capital will be used to support future business expansion, growing assets and loan book. Strong capital will help the company to give more loans and reach new markets.

Apart from this, the company is also expected to benefit from brand visibility through stock market listing. Becoming a publicly listed company can increase both the identity and confidence of Income Finance. This will create a public market in India for the company’s shares, which may make it easier to raise capital in the future.