Evaluating February IPOs from AI Solutions to Small Business Lending

Hello Hive Fam!

I hope your day is going well and that you're having a good time.

Last year, 2025, has been a good year. Many companies got their stocks listed on the market. The first month of this year has passed by, and it looks like this year is also going to be similar, where a lot of companies are heading towards the stock market to have a presence. Last month I applied for an IPO, but I was not lucky enough to get the allocation, and that was the outcome in my opinion, because that listing happened at a negative price, so I was able to save some money, but that's part of investing in IPO. When we invest in something, then obviously we are ready for profit and loss both, and we have no control over this except having some strategy in place.

There are three IPO are available currently. Two are open for subscription and will be closing tomorrow, which is 11th Feb 2026. The other one is still open for the pre-application, and it will be closing on 16th Feb, so there is more time on this one as compared to the other two, and I have not yet done any investment in either of the IPO subscriptions.

Fractal Analytics Ltd is an AI company, and this company was founded in the year 2000 and has been providing AI-based solutions to large global organisations. AI technology was not so much popular back then, but now we are in the era where AI is a kind of revolution, and we see a lot happening in this space. Because of higher adoption The probability of growth is higher with this company since AI is everywhere this time, and I see a lot of development happening in this segment.

The other company is called Aye Finance, which is an NBFC (Non-Banking Financial Company). The company has been providing unsecured loans to small businesses for working capital. Gently, NBFC Companies are good on margin because they charge higher interest as compared to the bank, and that's why their margins are higher. In India, the RBI has guidelines for all the banks and NBFC companies, so they have to comply, and that is why such companies cannot follow unethical practices, or else they will have to face problems.

It is a segment where growth is good because this is the time for the startup culture, where a lot of companies are seeking funding support, and since the procedure to get the funding from a bank is difficult, that is why NBFC is a better option for those companies to go far The process is simple, but charges are on the higher side. Since those companies need money, they go for it, and that's where NBFCs make money.

I am still going through the balance sheet of both companies and will be taking my investment decision later today. Probably I will be investing in one company based on which one is on top, and other one is still in my list because I have more time to do some study on the fundamentals for the company and currently it is available for pre application, so it's fine because there is a week in between which is good enough for me to make my decision.

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Image courtesy - https://groww.in portal

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