Aye Finance IPO: MD Sanjay Sharma On Growth, Risks & The Road Ahead

Aye Finance, a leading micro-business lender, closed its ₹1,010 crore IPO (₹710 cr fresh issue + ₹300 cr OFS) oversubscribed at ₹122–129/share. Listing: February 16, 2026. MD Sanjay Sharma highlighted the massive underserved market - ~7 crore unorganized micro-enterprises (small manufacturers, traders, service providers) generating 90% of industrial employment. Aye Finance provides small-ticket working capital loans (avg ₹1.5 lakh) via hypothecation or mortgage, operating across 21 states with diversified geography. Key metrics: Borrowing cost down to 10.6% (from 11.3%), lending rates 14-28.5%, credit costs moderating (last year 5.15%, now trending lower), ROA ~3.5% even in tough cycles. Proceeds to fuel 2-3 years of doubling AUM from ₹6,100 cr. Focus: Priority sector lending to transform micro-enterprises.