Laxmi India Finance Ltd, a Jaipur-based non-banking financial company (NBFC), has opened its initial public offering (IPO) for subscription from July 29 to July 31, 2025. The Rs 254.26 crore issue is drawing attention from investors keen to tap into India’s expanding MSME credit market. With a strong regional footprint and consistent financial growth, the company is positioning itself as a high-yield alternative in the formal lending space.
IPO Structure and Key Metrics
- The IPO comprises a fresh issue of 1.05 crore equity shares worth Rs 165.17 crore
- An offer-for-sale of 56.38 lakh shares by existing shareholders adds Rs 89.09 crore to the issue size
- Price band is set between Rs 150 and Rs 158 per share
- Minimum lot size is 94 shares, requiring an investment of Rs 14,852 at the upper band
- Tentative listing date is August 5, 2025, on both BSE and NSE
The IPO is managed by PL Capital Markets, with Link Intime serving as the registrar. Anchor investors have already committed Rs 75 crore, including participation from BNP Paribas, Saint Capital Fund, and Holani Venture Capital.
Grey Market Premium and Subscription Trends
- Grey market premium (GMP) currently stands at Rs 9, indicating a potential listing price of Rs 167
- This reflects a 5.7 percent premium over the upper price band
- On Day 1, the IPO saw 17 percent overall subscription
- Retail investors showed stronger interest, with 31 percent subscription in their category
- Non-institutional investors subscribed 7 percent, while QIBs remained on the sidelines
The subdued institutional response is typical for early bidding days, with momentum expected to build closer to the closing date.
Company Profile and Financial Performance
Laxmi India Finance specializes in secured lending to underserved segments, particularly MSMEs and vehicle loan borrowers. As of March 2025, the company had:
- Assets under management (AUM) of Rs 1,277 crore
- MSME loans comprising 76.34 percent of the total portfolio
- A network of 158 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh
- Over 35,500 active customers, with 37 percent being first-time borrowers
Financial highlights for FY25:
- Revenue rose 42 percent year-on-year to Rs 248 crore
- Profit after tax surged 60 percent to Rs 36 crore
- Return on net worth stood at 14.01 percent
- Price-to-earnings ratio based on FY25 earnings is 22.93
Strategic Outlook and Use of Proceeds
The company plans to use the fresh issue proceeds to:
- Strengthen its capital base
- Support future lending activities
- Meet general corporate requirements
Managing Director Deepak Baid emphasized that the IPO will help reduce borrowing costs and improve margins. The company expects its credit rating to improve post-issue, enabling access to cheaper funds from larger banks.
Analyst Reviews and Investment Sentiment
Brokerage views are cautiously optimistic:
- Canara Bank Securities recommends subscribing for long-term gains, citing strong CAGR in revenue and PAT
- Bajaj Broking highlights robust underwriting and risk management but flags concentration risk in MSME exposure
- Swastika Investmart suggests the IPO suits high-risk investors with a long-term horizon
While the issue is priced slightly above peers at 2.57 times book value, analysts believe the company’s regional dominance and growth trajectory justify the premium.
Conclusion
Laxmi India Finance’s IPO offers a compelling entry into India’s MSME lending ecosystem. With strong financials, deep regional reach, and a focused business model, the company is well-positioned to benefit from rising demand for formal credit. Investors seeking exposure to high-yield NBFCs with scalable operations may find this IPO worth considering, especially as the subscription momentum builds.
Sources: Economic Times, Business Standard, Moneycontrol, Livemint, NDTV Profit, India Today, Chittorgarh IPO Dashboard, Laxmi India Finance RHP and investor briefings
