Aye Finance

Aye Finance, launching its IPO at ₹129 to raise ₹3200 crores, appears to be a very high-risk proposition for investors. The company's financials present several red flags: an alarming 65% employee attrition rate signals deep internal issues, and its impairment losses, consuming a massive 20% of revenue, are significantly higher than peers like SBFC Finance (7%) and Five Star Business Finance (6-7%). Valued at a rich PE of 25, this pricing seems disconnected from its underlying challenges. My opinion is clear: consider it only for aggressive listing gains if the Grey Market Premium (GMP) offers a substantial premium (20-30%+) to offset the inherent risks. In contrast, SBFC Finance, trading at a PE of 23, boasts much cleaner books with lower impairment. Five Star Business Finance, with a compelling PE of 11 and robust fundamentals, seems more attractive, though its recent stock decline warrants further scrutiny. Even SBFC, a benchmark for asset quality, manages impairments around 7%. The comparison to Bajaj Finance also highlights Aye Finance's concerning work culture. For long-term investors, I Finance presents too many uncertainties.