New Delhi: The Initial Public Offering (IPO) of Laxmi India Finance opened for public subscription on Tuesday, July 29, 2025. This NBFC (non-banking financial company) is offering shares in the price band of ₹150 to ₹158 per share.
Investors can apply for a minimum lot of 94 equity shares, and in multiples thereafter. The IPO will close on Thursday, July 31, 2025.
IPO Subscription Status (Day 2 Update)
As of 10:15 AM on Day 2, the IPO was subscribed 0.44 times, with 49.22 lakh bids placed against 1.13 crore shares available.
Here’s how each category performed:
- Retail investors: 0.72 times subscribed
- Non-Institutional Investors (NIIs): 0.23 times
- Qualified Institutional Buyers (QIBs): 0.10 times
- Employee quota: 0.46 times
Grey Market Premium (GMP)
Shares of Laxmi India Finance are trading at a GMP of ₹8.25 in the unlisted grey market. This indicates a listing price of around ₹166.25, which is 5.22% higher than the issue price.
However, GMP is not a guaranteed indicator of listing gains. It simply reflects investor sentiment in the grey market, and can change anytime.
IPO Size and Fund Use
The total IPO size is ₹254.26 crore, broken down as:
- Fresh issue: ₹165.17 crore
- Offer for Sale (OFS): ₹89.09 crore (56.38 lakh shares)
The company plans to use the proceeds from the fresh issue to strengthen its capital base, meet future business requirements, and for general corporate purposes.
Anchor Investors
Before the IPO opened, Laxmi India Finance raised ₹75.5 crore via its anchor book.
Shares were allotted at ₹158 each to top institutional investors including:
- Saint Capital Fund
- BNP Paribas Financial Markets – ODI
- Compact Structure Fund
- Cognizant Capital Dynamic Opportunities Fund
- India Max Investment Fund
- Holani Venture Capital Fund-I
- Rajasthan Global Securities
Company Overview
Founded in 1996, Laxmi India Finance is based in Rajasthan and serves MSME borrowers, small businesses, and entrepreneurs. Its offerings include:
- MSME loans
- Vehicle loans
- Construction finance
- Structured lending solutions
Notably, 80% of its MSME portfolio qualifies as priority sector lending, a key metric for NBFCs.
Financial Performance
For the year ending March 31, 2025, the company posted:
- Net Profit: ₹36.01 crore
- Revenue: ₹248.04 crore
In the previous year (FY24), it had:
- Net Profit: ₹22.47 crore
- Revenue: ₹175.02 crore
The company aims to scale operations further and strengthen profitability.
Listing and Registrar Details
Shares will be listed on both BSE and NSE on Tuesday, August 5, 2025.
- Book Running Lead Manager: PL Capital Markets
- Registrar to the Issue: Link Intime (MUFG Intime India)
What Brokerages Are Saying
Arihant Capital
Arihant recommends subscribing, citing:
- Strong AUM growth: 32.83% YoY in FY25
- Low NPAs: Gross NPA at 1.07%, Net NPA at 0.48%
- Valuation: Reasonable at P/BV of 3.21x based on FY25 book value of ₹49.26
- Diversified funding from 47 lenders
- Capital Adequacy Ratio: 20.80%
Swastika Investmart
Swastika highlighted the company’s strength in underserved lending, but noted:
- Highly competitive NBFC market
- Fair IPO valuation
Hence, it advises subscribing with caution.
SMIFS
SMIFS gave a green signal based on:
- Consistent AUM and profit growth
- High-quality loan book
- Experienced management
- Opportunities in cross-selling and expansion
Ventura Securities
Ventura supports the IPO due to Laxmi India’s vision to:
- Expand geographically
- Upgrade digital infrastructure
- Introduce new-age financial products
- Boost SME financing and insurance cross-selling
