Aye Finance Shares Start Trading Today After IPO

Aye Finance's shares are starting to trade on the stock market today. The company had an IPO recently. The price in the unofficial market is not showing a gain, which might mean the shares will start trading at the same price they were offered at, or maybe a little lower. Investors will watch to see how the shares do.
By Newsroom | Business, India |

Aye Finance's shares are set to begin trading today, marking its entry into the public market. The debut comes after an initial public offering (IPO) that saw varied investor interest and a grey market premium (GMP) that has remained flat, suggesting a potentially subdued listing. The performance on its first day of trading will be closely watched, especially considering the company's financial standing and the broader economic climate.

IPO Overview and Timeline

The Aye Finance IPO was structured as a substantial fundraising effort, comprising ₹1,010 crore. This was divided into:

  • A fresh issue of shares amounting to ₹710 crore.

  • An offer-for-sale (OFS) component of ₹300 crore.

The IPO was open for subscription from February 9th to February 11th. The final issue price was set at ₹129 per share, which was the upper end of the price band of ₹122-₹129. Allotment of shares was finalized on February 12th.

Grey Market Performance: A Muted Indicator

The grey market premium (GMP) for Aye Finance shares has been a focal point leading up to its listing.

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Aye Finance shares to debut today. Here's what GMP suggests ahead of listing - 1

  • Early Signals: In the initial days, the GMP was reported as high as ₹5 (around February 4th), hinting at a positive debut.

  • Shifting Trends: As the subscription period progressed and leading up to the listing date of February 16th, the GMP saw a significant decline.

  • Current Status: Most reports indicate the GMP has settled around zero or a slightly negative value in the days immediately preceding the listing. This suggests that the shares are trading, in the unofficial grey market, at or below their issue price of ₹129.

A zero or negative GMP indicates a potential for listing at a discount or at par with the issue price, rather than a premium.

Subscription Levels: Mixed Investor Participation

The overall subscription numbers for the Aye Finance IPO revealed varied interest across different investor categories:

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  • Qualified Institutional Buyers (QIBs): This segment showed moderate interest, subscribing 1.62 times their allocated portion.

  • Retail Investors: Participation from retail investors appeared weak, with their portion subscribed at 0.81 times.

  • Overall Subscription: The IPO closed with an overall subscription of approximately 1.04 times, indicating that the issue was just fully subscribed.

Financial Health and Company Profile

Aye Finance operates as a non-banking financial company (NBFC). For the fiscal year 2025, the company reported:

  • Total Income: ₹1,504.99 crore

  • Profit After Tax (PAT): ₹175.25 crore

The company provides various loan products, including mortgage loans, secured, and unsecured hypothecation loans.

Aye Finance shares to debut today. Here's what GMP suggests ahead of listing - 2

Market Debut Expectations

The flat to negative GMP is a key indicator of investor sentiment regarding the upcoming listing.

  • Discount Listing Possibility: A negative premium suggests that the shares might begin trading on the stock exchanges (BSE and NSE) at a price lower than their IPO issue price.

  • Dependence on Market Conditions: Experts note that the actual performance on listing day will also depend on broader market sentiment and any institutional support that emerges post-listing.

Expert and Market Commentary

Market observers have noted the shift in GMP. While initial expectations may have been higher, the subsequent decline suggests a more cautious outlook.

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"A negative premium suggests the possibility of a discount listing, although actual performance will depend on broader market conditions and institutional support."

The weak retail subscription also signals a need for sustained company performance and investor confidence to drive share value post-listing.

Conclusion and Outlook

Aye Finance's market debut is scheduled for February 16th. The IPO successfully raised its target amount, but the flat grey market premium is a signal of caution. While the company has a reported income of over ₹1,500 crore and a profit of over ₹175 crore for FY25, investor appetite in the pre-listing unofficial market has not translated into a significant premium. The company's ability to demonstrate consistent growth and profitability, coupled with favorable market conditions, will be crucial for its stock performance in the coming days. The observed subscription levels, particularly the lower retail interest, suggest that sustained engagement and positive financial reports will be key to building investor confidence post-listing.

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Frequently Asked Questions

Q: When did Aye Finance's IPO start and end?
The IPO was open for people to buy shares from February 9th to February 11th.
Q: What was the price for Aye Finance shares in the IPO?
The shares were offered at ₹129 each, which was the highest price in the set range.
Q: What does a flat grey market price mean for the listing?
A flat or zero price in the unofficial market means shares might start trading at the same price they were sold for in the IPO, or possibly a bit less.
Q: How many people applied for the IPO?
The IPO was just fully subscribed, meaning a little more than the number of shares offered were applied for. Not many retail investors applied.
Q: What does Aye Finance do?
Aye Finance is a company that gives loans to small businesses. It is known as a non-banking financial company.