Laxmi India Finance Limited, a Non-Banking Financial Company (NBFC) headquartered in India, has announced the opening of its Initial Public Offering (IPO) on July 29, 2025. The IPO will remain open for subscription until July 31, 2025, and is aimed at expanding the company's capital base and fulfilling future lending requirements.

Company Overview

Laxmi India Finance is a non-deposit taking NBFC primarily catering to the financial needs of underserved customer segments in India. The company operates through a network of 139 branches spread across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, covering rural, semi-urban, and urban regions.

Its product portfolio includes:

• MSME loans

• Vehicle loans

• Construction loans

• Other diversified lending products

As of September 30, 2024, Laxmi India Finance has established a strong footprint in Tier-2 and Tier-3 cities, positioning itself to capitalise on India’s credit demand in underserved geographies.

IPO Details

The IPO is a Book Built Issue aggregating up to ₹254.26 Crores, comprising:

• Fresh Issue: 104.53 lakh shares, aggregating ₹165.17 Cr

• Offer for Sale (OFS): 56.38 lakh shares, aggregating ₹89.09 Cr

The IPO price band is fixed at ₹150 to ₹158 per equity share. Investors can place bids in lots of 94 shares, with a minimum investment of ₹14,852 for retail participants. High-Net-Worth Individuals (HNIs) need to bid for a minimum of 14 lots (1,316 shares), amounting to ₹2,07,928 at the upper price band.

The issue is being managed by PL Capital Markets Private Limited as the Book Running Lead Manager (BRLM), while MUFG Intime India Private Limited is the Registrar.

Market Capitalisation at the upper price band of ₹158 is estimated to be ₹825.83 Crores.

IPO Timeline

Anchor Investors Allocation

Laxmi India Finance raised ₹75.51 Crores through the Anchor Investor route by allotting 47,79,379 equity shares at ₹158 per share on July 28, 2025. This move reflects institutional confidence and strengthens the credibility of the offer.

Grey Market Premium (GMP)

As of July 24, 2025, the Grey Market Premium (GMP) for Laxmi India Finance IPO is ₹13, suggesting an expected listing price of ₹171 and an approximate listing gain of 8.22%.

It is essential to understand that the GMP is speculative and unofficial. It depends on unorganised supply-demand trends and should not be the sole basis for investment decisions.

Live Subscription Status

As of 11:00 AM on July 30, 2025, the IPO has been subscribed 0.21 times on the second day of its subscription window. The final subscription figures will provide deeper insight into retail and institutional demand.

Allotment Status Guide

Investors can check their allotment status post-finalisation by following these steps:

1. Visit the IPO allotment status portal of the registrar.

2. Select Laxmi India Finance Limited IPO from the dropdown.

3. Enter either your PAN, Application Number, or DP Client ID.

4. Submit the details to view the allotment status.

Allotments are expected to be visible starting August 01, 2025.

Financial Performance

The company has showcased consistent growth over the last three financial years:

The company’s Pre-Issue EPS is ₹8.78, and Post-Issue EPS is ₹6.89. The Price-to-Earnings (P/E) ratio stands at:

• Pre-Issue P/E: 17.99x

• Post-Issue P/E: 22.94x

These values are significantly lower than the Industry P/E of 82x, indicating a moderately priced IPO.

The Return on Equity (ROE) and Return on Net Worth (RoNW) are both at 15.66% for FY24, reflecting healthy profitability and operational efficiency.

Utilisation of IPO Proceeds

The net proceeds from the fresh issue will be utilised for:

1. Augmenting the company’s capital base for future onward lending – ₹1770 Million

2. General corporate purposes and issue-related expenses

Management and Governance

Led by Promoter Deepak Baid, who brings over 20 years of experience in the financial services industry, Laxmi India Finance has a strong leadership team. The company also benefits from independent directors contributing to sound corporate governance and strategic growth.

Laxmi India Finance IPO Review

Laxmi India Finance is uniquely positioned to benefit from the growth in rural and semi-urban credit demand. With a diversified loan portfolio, consistent financial growth, and reasonable valuations, the IPO may offer moderate listing gains.

However, investors should note:

• The NBFC sector faces regulatory and credit risks

• The IPO is moderately subscribed so far

• GMP indicates modest demand in the unofficial market

Recommendation:
Risk-taking investors may consider applying for listing gains, but long-term investors should evaluate sectoral risks and post-listing performance.

Disclaimer

The above analysis is intended for educational and informational purposes only and should not be treated as financial advice. Investments in the securities market are subject to market risks. Please read all related documents carefully before investing. Consult a professional financial advisor before making any investment decisions.

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