Newly listed Aye Finance shares rise 9% on bourses; analysts weigh strategy

Despite paring some gains, the NBFC counter continued to witness steady investor interest during the intraday deals on Tuesday

Aye Finance Share Price: Shares of recently listed non-banking financial company (NBFC) Aye Finance were high in demand an otherwise subdued markets on Tuesday, February 17. The stock rose as much as 9.22 per cent to touch a fresh all-time high of ₹140.80 on the NSE, a day after making a flat debut following the completion of its ₹1,010-crore initial public offering (IPO).

 

The shares are trading nearly 9.14 per cent above the IPO issue price of ₹129 per share.

 

Aye Finance is a middle-layer NBFC focused on lending to micro, small, and medium enterprises (MSMEs) across India. It provides business loans for working capital and expansion, backed by hypothecation of working assets or property as collateral, catering to clients in the manufacturing, trading, services, and allied agriculture sectors. 

 

 

Despite paring some gains, the NBFC counter continued to witness steady investor interest. At 10:11 AM on Tuesday, Aye Finance stock was trading at ₹140.37 per share, up 8.89 per cent from its previous close of ₹128.91 on the NSE. The benchmark Nifty 50 was at 25,662, down 20 points, or 0.08 per cent. 

 

A total of 3.08 million equity shares of Aye Finance, valued at approximately ₹45 crore, changed hands on the BSE and NSE during the session. The company’s market capitalisation stood at ₹3,489.28 crore on the NSE as of February 17.  CHECK Stock Market LIVE Updates

Here’s what investors should do

According to Ravi Singh, chief research officer at Master Capital Services, investors are closely watching asset quality and cost of funds in the current rate environment. “For fresh investments, investors should wait before entering, and existing holders should consider exiting for now, as we may see a short-term correction of nearly 8–10 per cent in the stock, as its valuation appears overstretched,” he said.

 

In a post-listing note, Shivani Nyati, head of wealth at Swastika Investmart, said the stock carries a neutral to slightly cautious bias. She advised investors to “maintain a strict stop loss at ₹118 for short-term positions, while long-term traders hold with a stop loss of ₹110.”

 

She added, “The MSME-focused NBFC continues to offer a structurally strong long-term opportunity, supported by healthy revenue growth of 21.8 per cent year-on-year in H1 FY26 and strong institutional backing. The fresh capital raised is expected to support future lending expansion. However, concerns remain due to the sharp 40 per cent year-on-year decline in net profit, modest IPO subscription of around 97 per cent, and intense competition in the NBFC space.” 

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(Disclaimer: The views and investment tips expressed by the analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.)