Two IPOs Open Feb. 9 as Aye Finance, Fractal Analytics Target Retail Investors

Two mainboard initial public offerings, Aye Finance and Fractal Analytics, open for subscription on Monday, offering investors a choice between a micro-MSME lender and an analytics-led artificial intelligence services firm, with contrasting valuations and risk profiles.

Both IPOs close Feb. 11 and are scheduled to list on the BSE and NSE on Feb. 16. Each requires an initial retail outlay of about Rs. 14,000 to Rs. 15,000, making them broadly comparable in accessibility despite large differences in issue size and pricing.

Aye Finance IPO Opens With Flat Grey Market Signals

Aye Finance’s Rs. 1,010-crore issue consists of a Rs. 710-crore fresh issue and a Rs. 300-crore offer for sale. The price band is Rs. 122 to Rs. 129 per share, with a minimum application of 116 shares, translating to Rs. 14,964 at the upper end.

The grey market premium, or GMP, stood at Rs. 0 as of Feb. 8, suggesting expectations of a flat listing around the upper price band. Market participants say the premium could shift once bidding begins.

Aye Finance operates in the nonbank financial company segment, focusing on micro and small businesses that are often underserved by traditional banks. Analysts say such lenders are typically judged on asset quality, growth in assets under management, and demand for credit.

Capital Market, in an IPO note, assigned an “Avoid” rating to the issue, citing elevated risks.

“Concerns remain around rising NPAs, higher provisioning and exposure to credit-thin micro-MSME borrowers, despite strong AUM growth and a diversified geographic footprint,” the brokerage said.

The firm added that the company still offers long-term opportunities given India’s underpenetrated MSME lending market, but risk-averse investors may prefer to stay on the sidelines.

Fractal Analytics Draws Moderate Premium, Higher Valuation

Fractal Analytics’ IPO is significantly larger, at Rs. 2,833.9 crore, comprising a Rs. 1,023.5-crore fresh issue and a Rs. 1,810.4-crore offer for sale. The price band is Rs. 857 to Rs. 900 per share. One lot consists of 16 shares, requiring Rs. 14,400 at the upper end.

The stock is commanding a GMP of Rs. 29, indicating a potential listing price near Rs. 929 and an expected gain of about 3.22%.

The company operates in data analytics and AI-led decision intelligence, serving clients across multiple industries. Such businesses often attract premium valuations tied to digital transformation and enterprise technology spending.

Kantilal Chhaganlal Securities Pvt. Ltd. has given the issue a “Subscribe” rating, citing Fractal’s established presence across four focus industries and its positioning in advanced analytics.

“At the upper price band of Rs. 900, the issue is valued at about 78.9 times FY25 post-issue P/E, with no directly comparable listed peers globally for its pure-play decision intelligence and AI-led business model,” the brokerage said.

The firm described Fractal as India’s first pure-play AI company to list, combining services with incubated software-as-a-service products such as Fractal Alpha.

Sector Choice May Drive Investor Decisions

Market observers say the decision between the two IPOs largely hinges on sector preference and risk tolerance.

Aye Finance offers exposure to domestic credit growth and small-business lending, but with sensitivity to asset quality and economic cycles. Fractal Analytics provides a play on enterprise AI adoption and digital services, albeit at a higher valuation and with technology-sector volatility.

Kantilal Chhaganlal Securities said Fractal may suit “long-term, high-risk, growth-focused investors with a three- to five-year horizon,” while brokerages remain cautious on Aye Finance in the near term.

With both issues opening on the same day, investors are weighing stability against growth potential as the primary differentiator.