Laxmi India Finance IPO to open on July 29th

Mumbai, 23 July 2025: Laxmi India Finance Ltd., a Rajasthan-headquartered Non-Banking Financial Company (NBFC), is all set to launch its Initial Public Offering (IPO) on July 29, 2025, aiming to raise ₹254.26 crore through a combination of fresh equity and offer for sale (OFS). The IPO marks a strategic capital expansion as the company looks to bolster its MSME and vehicle lending business across semi-urban and rural India, the company said in its statement.

Fresh Equity Infusion and Offer for Sale to Raise Over ₹250 Crore

Laxmi India Finance IPO comprises a fresh issue of 1.05 crore equity shares, aggregating up to ₹165.17 crore, and an offer for sale of 0.56 crore shares, amounting to ₹89.09 crore. The price band for the IPO has been set between ₹150 and ₹158 per share, and investors can place bids in a lot size of 94 shares.

The issue will open for subscription from July 29 to July 31, 2025, with PL Capital Markets Private Limited acting as the Book Running Lead Manager and MUFG Intime India Private Limited (Link Intime) as the registrar. The tentative listing date for the shares is set for August 5, 2025, on both BSE and NSE.

Reserved Categories, Investment Limits, and Key Timelines

Retail investors can apply for a minimum of one lot (94 shares), translating to an investment of approximately ₹14,100, while non-institutional investors (NIIs) have been segmented into sNII and bNII categories based on investment amounts. The sNII minimum application size is ₹2,07,928 (1,316 shares), while bNII applicants must invest ₹10,09,936 (6,392 shares) at the upper band.

Key dates for the IPO include:

• Allotment finalisation: August 1, 2025
• Refund initiation and Demat credit: August 4, 2025
• Listing date: August 5, 2025

Strengthening the Capital Base for Lending Growth

According to the company’s draft Red Herring Prospectus (RHP), the primary objective of the fresh issue is to augment its capital base to meet future lending requirements, particularly toward onward MSME lending. Laxmi India Finance plans to use ₹177 crore from the net proceeds toward this goal.

Promoters and Shareholding Structure Pre and Post IPO

The company is promoted by Deepak Baid, Prem Devi Baid, Aneesha Baid, Hirak Vinimay Pvt Ltd, and others. Pre-issue promoter holding stands at 89.05%, which is expected to dilute post-issue, increasing the total number of outstanding shares from 4.18 crore to 5.22 crore.

Proven Track Record in MSME and Vehicle Finance Expansion

Established in 1996, Laxmi India Finance is focused on providing secured loans in three key segments:

• MSME Loans: ₹0.05 million to ₹2.5 million, tenure up to 84 months, backed by property with 65% LTV.
• Vehicle Finance: Two-wheeler, tractor, and commercial vehicle loans ranging from ₹0.15 million to ₹1.5 million.
• Construction Loans: Secured loans for renovation/construction purposes, with amounts up to ₹2.5 million.

With a branch network of 158 outlets across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, the company has consistently deepened its presence in tier-2 and tier-3 regions.

Customer Base and Lending Operations Scale in FY25

As of March 31, 2025, Laxmi India Finance had:

• 35,568 active customers, with 48.78% growth from FY24
• 12,770.18 million in Assets Under Management (AUM)
• MSME loans accounting for 76.34% of AUM
• Lending partnerships with 47 financial institutions, including 8 PSU banks and 22 NBFCs

The company also reported that 37.10% of its customer base comprises first-time borrowers, reflecting its efforts in financial inclusion.

Financials Show Consistent Growth in Revenue and Profitability

Laxmi India Finance Ltd. has shown strong financial performance in FY25. The company’s revenue rose by 42% to ₹248.04 crore, up from ₹175.02 crore in FY24, driven by higher loan disbursements and customer expansion. Profit after tax (PAT) grew by 60%, reaching ₹36.01 crore, compared to ₹22.47 crore the previous year. Total assets increased to ₹1,412.52 crore, while net worth stood at ₹257.47 crore. Borrowings rose to ₹1,137.06 crore, reflecting a broader lending base. The company’s EBITDA reached ₹163.88 crore in FY25, indicating strong operational efficiency. All figures are on a consolidated basis.

Key Metrics Indicate Operational Strength 

As of March 31, 2025, the company reported a debt-to-equity ratio of 4.42, typical for NBFCs. The Return on Net Worth (RoNW) was 13.95%, and the PAT margin stood at 14.48%, showing healthy profitability. An EBITDA margin of 66.07% reflects cost control and efficient operations. The Price-to-Book Value is 2.57, indicating strong market valuation. The Earnings Per Share (EPS) is ₹8.61 pre-issue and ₹6.89 post-issue, with a P/E ratio of 18.35x and 22.94x, respectively. These metrics suggest solid financial fundamentals and a positive outlook for investors.

IPO Offers an Opportunity for Investors to Tap the Expanding MSME Credit Market

With a robust presence in semi-urban and rural areas, deep lending expertise in MSMEs, and a solid branch network, Laxmi India Finance Ltd. aims to capture the growing demand for credit in India’s priority sectors. The upcoming IPO not only positions the company for future expansion but also opens up an opportunity for investors looking to participate in the NBFC sector’s credit-led growth story.

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