Laxmi India Finance Limited, a non-deposit taking Non-Banking Financial Company (NBFC), is launching its Initial Public Offering (IPO) from July 29, 2025, to July 31, 2025. The IPO is aimed at strengthening its capital base to support further growth in its lending operations targeted at underserved markets across India.

The company operates through 139 branches spread across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, offering a diverse range of financial products including MSME loans, vehicle loans, and construction loans. Its customer base is largely underserved, giving it a niche positioning in India's credit-starved regions.

IPO Details and Price Band

The IPO of Laxmi India Finance is a Book Built Issue of ₹254.26 Crores, comprising:

• A Fresh Issue of 104.53 lakh equity shares worth ₹165.17 Crores

• An Offer for Sale (OFS) of 56.38 lakh equity shares totaling ₹89.09 Crores

The price band is fixed at ₹150 to ₹158 per equity share, with a lot size of 94 shares. Retail investors can participate by investing a minimum of ₹14,852, while HNIs need to invest in at least 14 lots (1,316 shares) amounting to ₹2,07,928.

The expected market capitalisation at the upper price band is ₹825.83 Crores.

Listing and Registrar Information

Shares are proposed to be listed on both BSE and NSE, with a tentative listing date of August 5, 2025. The allotment date is likely to be August 1, 2025.

• Book Running Lead Manager (BRLM): PL Capital Markets Pvt Ltd

• Registrar to the Issue: MUFG Intime India Pvt Ltd (formerly Link Intime India Pvt Ltd)

Grey Market Premium (GMP) and Expected Listing Price

As of July 24, 2025, the Grey Market Premium (GMP) is ₹13, which suggests an expected listing price of ₹171 — 8.22% higher than the upper IPO price band. It's important to note that GMP is unofficial and unregulated, and should only be used for reference.

Use of IPO Proceeds

The net proceeds from the fresh issue will be used primarily for:

1. Augmenting the capital base to support onward lending

   • Allocation: ₹1,770.00 million

2. General corporate purposes

Financial Performance Snapshot

Laxmi India Finance has demonstrated consistent financial growth over the last three years. Below is a summary of their performance:

The profit after tax (PAT) has more than doubled from FY23 to FY25, indicating strong growth and operational efficiency.

Valuation and Ratios

Key valuation indicators based on FY24 data are:

• Pre-Issue EPS: ₹8.78

• Post-Issue EPS: ₹6.89

• Pre-Issue P/E Ratio: 17.99x

• Post-Issue P/E Ratio: 22.94x

• Industry P/E Benchmark: 82x

• Return on Equity (ROE): 15.66%

• Return on Net Worth (RoNW): 15.66%

Though the post-issue P/E ratio is higher than average, it remains significantly below the industry average, indicating a reasonable valuation.

Promoters and Management

The company is promoted by Deepak Baid, who has over 20 years of experience in the financial services industry. The leadership team includes experienced professionals and a strong board of independent directors, ensuring sound governance practices.

The management's focus on rural and semi-urban penetration along with technology-enabled services gives the company a competitive edge.

Allotment Status – How to Check

Investors can check their IPO allotment status on or after August 1, 2025, through the registrar’s website:

Steps to check allotment:

1. Go to the registrar's IPO allotment page.

2. Select "Laxmi India Finance Limited IPO".

3. Enter application number, PAN, or DP Client ID.

4. Submit to view allotment status.

Final Thoughts – Should You Apply?

The Laxmi India Finance IPO offers investors exposure to India’s expanding rural credit landscape. With a GMP of ₹13 indicating modest listing gains, the IPO may attract listing-focused investors. However, the NBFC sector is highly regulated and cyclical, and hence suitable only for those with risk appetite.

Given the strong financial growth, steady expansion, and fair pricing, risky investors may consider applying to this IPO for listing gains.

Disclaimer: This review is for informational purposes only. It should not be construed as investment advice. Investors must consult their financial advisors before investing. Past performance is not indicative of future results. Investment in securities is subject to market risks.

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