Laxmi India Finance IPO

1.86x

subscribed

Laxmi India Finance IPO

Finance - NBFC
listed
₹14,100Min. investment
  1. Pre-apply
    26 Jul
  2. Bid start
    29 Jul
  3. Bid end
    31 Jul
  4. Allotment
    1 Aug
  5. Release of funds
    4 Aug
  6. Demat transfer
    4 Aug
  7. Listing
    5 Aug

About Laxmi India Finance Limited

SectorFinance - NBFC
Price range₹150 – ₹158
IPO type
Regular
Lot size94 shares
Issue size₹254Cr
Red Herring Prospectus
Read
Market Cap
₹825.83CrLower than sector avg
RevenueApr 2024 - Mar 2025
₹245.71CrLower than sector avg
Growth rate3Y CAGR
28.50%Higher than sector avg

Laxmi India Finance Limited IPO Overview

Laxmi India Finance Limited IPO Date

Laxmi India Finance IPO will open for subscription on July 29, 2025, and the closing date for the IPO is July 31, 2025. After this, investors are expected to be updated about the allotment status on Friday, Aug 1, 2025.

Investors who have been allotted shares can expect them to be credited to their demat account on Aug 4, 2025. The shares will be listed on the NSE and the BSE on Tuesday, Aug 5, 2025.

Laxmi India Finance Limited IPO Price Band

The IPO includes both a fresh issue of shares and an offer for sale. The IPO price band has been set between ₹150 to ₹158 per share. Interested investors can choose a price within this band to apply for the IPO

The IPO is a book-building issue, comprising a fresh issue of ₹165.17 crore and offer for sale of ₹ 89.09 crore.

The Laxmi India Finance IPO listing price will be determined on Aug 5, 2025. The listing price is the price at which a company’s shares debut on the stock exchanges.

Laxmi India Finance Limited IPO Lot Size

The Laxmi India Finance IPO details have been declared. The minimum lot size for an application is 94 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹254.26 crore.

Checklist

Quality analysis
Revenue growth
Company valuation
Earnings expansion
Risk analysis
Debt to Equity ratio
Promoter holdings
Shares pledged
The investment checklist helps you understand a company's financial health at a glance and identify quality investment opportunities easily

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Revenue
Higher revenue means strong sales and good market demand
This IPO
₹245.71Cr
This sector
₹789.63Cr
Compare with companies
3Y growth
Strong 3-year growth shows consistent progress and potential
This IPO
28.50%
This sector
0.02%
Compare with companies
PAT
Higher PAT means strong profitability and efficient cost management
This IPO
₹36.01Cr
This sector
₹117.25Cr
Compare with companies
Market cap
Higher market cap means strong confidence but may suggest overvaluation
This IPO
₹825.83Cr
This sector
₹6,213.48Cr
Compare with companies
P/E ratio
Lower ratio usually means stock is undervalued
This IPO
18.00
This sector
52.32
Compare with companies
D/E ratio
Lower ratio usually means fewer liabilities
This IPO
4.02
This sector
0.85
Compare with companies

Objectives

Capital requirements for lending
The company will utilise the entire ₹177.00 crores for augmentation of the capital base.

Strength and Weakness

Deep penetration in semi-urban and rural markets

The company has 158 branches, with approximately 75% located in semi-urban and rural regions, where formal credit penetration is low. It leverages direct sales channels, DSAs, and digital outreach to increase reach. This gives it an advantage in underserved geographies.

Strong risk management and credit underwriting

The company has implemented a comprehensive risk framework including multi-level assessment, reliance on CIBIL scores, physical verification, and digital LOS systems. As of FY25, 98.81% of loans were secured, and NPAs were among the lowest in peer comparisons (GNPA at 1.07%, NNPA at 0.48%).

Strong focus on MSME lending

Laxmi India Finance has consistently focused on the MSME segment, with over 75% of its AUM attributed to MSME loans in each of the last three fiscals (FY23–FY25). The average loan ticket size ranges from ₹50,000 to ₹0.25 crore and is secured by collateral, reducing default risk. This segment is significantly underpenetrated by traditional lenders, providing vast opportunities for growth.

Geographical expansion and cross-selling through existing network

Currently operating in 5 states, the company plans to expand into districts with lower credit penetration. It also aims to deepen wallet share by cross-selling financial products (e.g., vehicle loans, personal loans) to its MSME customer base. This strategy can reduce customer acquisition costs and improve profitability.

Diversified funding Base

The company has a well-diversified funding base across 47 lenders, including PSU banks, private banks, SFBs, and NBFCs, with the top 10 lenders contributing 53.94% of total borrowings as of FY25. The company benefits from strong lender relationships, with 80% being repeat funders and a consistent YoY increase in credit limits.

About Laxmi India Finance Limited

Laxmi India Finance Limited is a non-deposit taking NBFC focused on serving the financial needs of underserved customers in India's lending market. The company operates through an extensive network of 158 branches across rural, semi-urban, and urban areas in 5 states: Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh as of March 31, 2025. It has the widest reach in Rajasthan with the highest number of branches amongst its peers and recorded the second highest return on net worth in FY25 among peer companies, according to the CARE Report.
The company has achieved impressive financial growth, with AUM increasing from ₹686.77 crores in March 2023 to ₹1277.02 crores in March 2025, representing a CAGR of 36.36%, while net worth increased from ₹152.33 crores to ₹257.47 crores over the same period. The customer base expanded significantly by 48.78%, from 23,906 customers in March 2024 to 35,568 customers in March 2025.
The company offers a diversified range of lending products, with MSME loans being the dominant segment, contributing 76.34% of total AUM as of March 2025, followed by vehicle loans at 16.12%. Construction loans account for 4.87% of AUM, while other products, including business loans, personal loans, and wholesale loans, constitute the remaining portfolio. Over 80% of the company's MSME loans qualify as Priority Sector Lending under RBI guidelines.
The company maintains strong credit quality metrics with a gross NPA ratio of 1.07% in FY25 and a net NPA ratio of 0.48%. Collection efficiency remained strong at 96.76% in FY25, supported by a dedicated collections team of 357 personnel as of May 31, 2025.
The company has diversified funding sources with access to 47 lenders, including 8 public sector banks, 10 private banks, 7 small finance banks, and 22 NBFCs and financial institutions as of March 31, 2025. The average cost of borrowing has decreased from 12.24% in March 2023 to 12.02% in March 2025, driven by credit rating upgrades and expanded PSU partnerships. The Capital to Risk Assets Ratio (CRAR) stood at 20.80% in FY25, well above regulatory requirements.
Systemic credit is projected to reach INR 300 trillion by FY27, growing at a CAGR of 12-13% from FY25 to FY27. Importantly, the share of NBFCs in systemic credit is expected to increase to 20% by FY27, from 17% in FY19, as NBFCs deepen their focus on retail and underserved borrowers. India's credit-to-GDP ratio remains significantly below developed nations at 93.6% in Sep 2024 vs. 140–200% in developed markets, the long-term headroom for credit growth. In states like Rajasthan and Madhya Pradesh, where Laxmi India Finance may be active, the ratio remains below 45%, indicating further growth potential.
On the MSME front, over 6.4 crore MSMEs are registered, but only 0.8 crore MSMEs have formal credit outstanding, showing a significant credit gap that NBFCs can address. NBFC MSME AUM is expected to grow at 20–22% CAGR and cross INR 6 trillion by FY27. Sector-wide decline in GNPA improves borrowing costs, and NBFC share in MSME lending is growing; Laxmi India can grow its MSME loan book over the next 3–5 years.
Now, Laxmi India Finance Limited is launching its initial public offering (IPO), which consists of a fresh issue worth up to ₹165.17 crore and an offer for sale worth up to ₹89.09 crore. The total issue size of the IPO is ₹254.26 crore. Its shares will be listed on the NSE and BSE.

IPO Analysis

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IPO Subscription Status

Date
QIB
NII
Retail
Total
29-Jul-25
0.0 times (X)
0.11 times (X)
0.38 times (X)
0.21 times (X)
30-Jul-25
0.45X
0.5X
1.32X
0.89X
31-Jul-25
1.3X
1.8X
2.2X
1.86X

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Laxmi India Finance IPO ?

The issue size of the Laxmi India Finance IPO is 254 Cr.

What is 'pre-apply' for Laxmi India Finance IPO ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Laxmi India Finance IPO shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.