Laxmi India Finance, a non-deposit taking non-banking financial company (NBFC), has launched its much-anticipated Initial Public Offering (IPO) on 29 July 2025. The IPO comprises a Book Built Issue amounting to ₹254.26 Crores, including a Fresh Issue of 104.53 Lakh shares worth ₹165.17 Crores and an Offer for Sale of 56.38 Lakh shares totaling ₹89.09 Crores. The subscription window will be open till 31 July 2025, with allotment expected on or about 1 August 2025, and shares slated for listing on both BSE and NSE on or about 5 August 2025.

The IPO price band is fixed between ₹150 and ₹158 per equity share, with a market capitalization expected to reach approximately ₹825.83 Crores at the upper band price. The lot size is 94 shares, which means retail investors need to invest a minimum of ₹14,852, while High Net Worth Individuals (HNIs) must subscribe to a minimum of 14 lots (1,316 shares), amounting to ₹2,07,928 at the upper price band.

PL Capital Markets Private Limited is the Book Running Lead Manager for this IPO, with MUFG Intime India Private Limited serving as the registrar.

Grey Market Premium and Market Sentiment

The Grey Market Premium (GMP) for Laxmi India Finance IPO currently stands at ₹13, indicating an expected listing price of around ₹161, which is an 8.22% premium over the upper price band. However, as with all grey market indicators, this is for educational and informational purposes only, since GMP reflects unregulated demand-supply forces and does not guarantee listing performance.

Subscription Status on Day 1

As of 1:00 PM on 29 July 2025, the IPO has been subscribed only 0.08 times, signaling modest initial response from the market. The subscription pace will need to pick up over the remaining days for a successful issue.

Anchor Investors Support

Ahead of the public subscription, Laxmi India Finance raised ₹75.51 Crores from anchor investors by allotting 47,79,379 equity shares at the upper price band of ₹158. This anchor participation reflects institutional confidence and acts as a strong base for the public offering.

Company Overview

Laxmi India Finance operates primarily in underserved segments across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, with an operational footprint of 139 branches as of September 30, 2024. Their product suite includes MSME loans, vehicle loans, construction loans, and other credit products tailored to meet the financial requirements of a diverse customer base spanning rural, semi-urban, and urban locations.

The company’s management team is led by Promoter Deepak Baid, who brings over 20 years of experience in the financial services sector. Supported by a skilled team and independent directors, the company emphasizes corporate governance and strategic growth.

Financial Performance

Laxmi India Finance has posted steady growth over the last three fiscal years:

• FY 2023: Revenue ₹1,306.68 Million | EBITDA ₹859.56 Million | PAT ₹159.71 Million

• FY 2024: Revenue ₹1,750.18 Million | EBITDA ₹1,145.86 Million | PAT ₹224.68 Million

• FY 2025: Revenue ₹2,480.38 Million | EBITDA ₹1,638.83 Million | PAT ₹360.05 Million

Key financial metrics include a pre-issue EPS of ₹8.78 and a post-issue EPS of ₹6.89 for FY24. The P/E ratio stands at 17.99x pre-issue and 22.94x post-issue, which is comparatively lower than the industry average of 82x. The company’s Return on Equity (ROE) and Return on Net Worth (RoNW) for FY24 are both 15.66%, indicating reasonable profitability.

Use of IPO Proceeds

The primary objective of raising funds through the IPO is to augment the company’s capital base with ₹1770 Million allocated to meet future capital requirements that will support onward lending growth. This capital infusion is critical to expanding the loan portfolio, particularly in MSME and vehicle financing segments.

IPO Allotment and Listing

Investors can check the allotment status from 1 August 2025 onward on the registrar website by:

• Selecting Laxmi India Finance Limited IPO

• Entering Application Number, PAN, or DP Client ID

• Submitting to view allotment status

The shares are expected to be listed on BSE and NSE around 5 August 2025.

Day-Wise GMP Trend

Investment Outlook

Considering the company’s steady financial growth, reasonable valuation, and strategic regional presence, the IPO appears fairly priced and may attract investors with a moderate risk appetite. The ₹13 GMP and strong anchor subscription provide a positive signal, but the slow subscription rate on Day 1 calls for cautious optimism.

The IPO suits risk-tolerant investors looking for potential listing gains and exposure to an NBFC focusing on the underserved lending market in India. Investors should balance the inherent risks in NBFC investments with the growth potential in the targeted geographies and product segments.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Readers are urged to consult with financial advisors and consider their own risk tolerance before investing. Investments in the securities market involve market risks and investors should read all related documents carefully before applying.

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