Aye Finance’s initial public offering (IPO) entered the market with a measured start, reflecting broader caution within the financial services sector. The **Rs 1,010 crore** issue opened for subscription on February 9, 2026, with the bidding window set to close on February 11. Day one subscription data shows an overall coverage of just **3%**. Retail investors led the activity, subscribing to **15%** of their allotted portion, while institutional and non-institutional buyers largely remained on the sidelines. The price band for the offering is fixed between **Rs 122 and Rs 129** per share. At the upper end of this range, the company is valued at approximately **Rs 3,184 crore**. For retail participants, the minimum investment is set at **Rs 14,964** for a lot of 116 shares. Market sentiment is currently mirrored in the grey market, where the premium (GMP) has trended toward **Rs 0**, indicating a potential flat listing. This follows a period where the premium softened from earlier highs of **Rs 7**, suggesting that investors are adopting a "wait and watch" approach. Financially, the lender has shown significant growth, with its Assets Under Management (AUM) rising to over **Rs 6,027 crore** by mid-FY26. Revenue for FY25 reached **Rs 1,504.99 crore**, marking a **40%** increase from the previous year. However, professional investors are closely monitoring asset quality. The Gross Non-Performing Assets (NPA) ratio rose to **4.9%** in the first half of FY26, up from **2.5%** in FY23. Additionally, while revenue climbed, net profit for the same period saw a year-on-year decline of **40%**, totaling **Rs 64.6 crore** due to rising impairment costs. The IPO consists of a fresh issue worth **Rs 710 crore** and an offer for sale (OFS) of **Rs 300 crore**. Notable selling shareholders include global backers like CapitalG, LGT Capital, and Alpha Wave India. The company plans to use the fresh proceeds to bolster its capital base for future lending. This listing comes at a time when the NBFC sector is navigating regulatory shifts and stable interest rates. While credit demand for small businesses remains high, the cautious reception to the Aye Finance IPO highlights a market-wide focus on profitability and credit costs over pure growth metrics. Final allotment of shares is expected by February 12, with the tentative listing on the BSE and NSE scheduled for February 16, 2026.