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Laxmi India Finance Limited (LIFL), a Jaipur-based NBFC specializing in MSME and vehicle loans, kicked off its ₹254.26 crore IPO today, July 29, 2025. The offering, which includes a fresh issue of ₹165.17 crore and an offer for sale worth ₹89.09 crore, is open for subscription until July 31. With a price band of ₹150–₹158 per share, the IPO has garnered cautious optimism from investors, particularly in the retail segment.
Key Developments on Day 1
- The IPO was subscribed 37% overall by the end of the first day
- Retail Individual Investors (RIIs) led the momentum with 60% subscription
- Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) lagged behind at 19% and 10% respectively
- Grey Market Premium (GMP) dropped from ₹18 to ₹9, indicating a modest 5.7% listing gain over the issue price
Anchor Investor Confidence
Ahead of the public offering, LIFL raised ₹75 crore from anchor investors by allotting 47.79 lakh shares at ₹158 each. Notable participants included BNP Paribas Financial Markets, Saint Capital Fund, Cognizant Capital Dynamic Opportunities Fund, and Holani Venture Capital Fund-I. This pre-IPO round signals institutional confidence in the company’s fundamentals despite a competitive lending landscape.
Company Snapshot and Financial Performance
LIFL operates across 158 branches in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. As of March 2025, its Assets Under Management (AUM) stood at ₹1,277 crore, up from ₹687 crore in March 2023, reflecting a CAGR of over 36%.
- FY25 revenue: ₹248 crore (up 42% YoY)
- FY25 profit after tax: ₹36 crore (up 60% YoY)
- Return on Net Worth (RoNW): 14.01%
- Price-to-Earnings (P/E) ratio: 22.93 (based on FY25 earnings)
- Price-to-Book (P/B) ratio: 2.57, higher than peer average of 2.02
Business Model and Market Positioning
LIFL focuses on underserved segments, offering secured loans to MSMEs, vehicle financing, and construction loans. MSME loans account for over 76% of its portfolio, with a significant share of first-time borrowers. The company’s hub-and-branch model enhances operational efficiency and customer accessibility, especially in semi-urban and rural areas.
Brokerage Sentiment and Risk Outlook
- Canara Bank Securities: Rated ‘Subscribe for Long-Term’, citing strong financials and MSME growth potential
- Swastika Investmart: Recommended for high-risk investors with long-term vision, noting fair pricing and competitive pressures
While the IPO is priced slightly above industry norms, LIFL’s regional dominance and consistent growth make it a compelling option for investors seeking exposure to India’s expanding MSME credit market.
IPO Mechanics and Investor Details
- Minimum lot size: 94 shares (₹14,100 investment)
- Tentative allotment date: August 1, 2025
- Expected listing: August 5, 2025 on BSE and NSE
- Lead Manager: PL Capital Markets Private Limited
- Registrar: MUFG Intime India Private Limited (Link Intime)
Final Thoughts
The Laxmi India Finance IPO has opened to a lukewarm but promising start, with retail investors showing strong interest. While institutional participation remains subdued, the anchor round and financial metrics suggest underlying confidence. Investors should weigh the company’s growth trajectory against valuation concerns and sectoral competition before making a move.
Sources: Mint, LiveMint, Rediff Money, India Infoline, Economic Times, Chittorgarh, IPO Watch, Indian Economy & Market, IPO360, Moneycontrol
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