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Laxmi India Finance IPO
1.86xsubscribed

Laxmi India Finance IPO

Finance - NBFC
listed
₹14,100Min. investment

Laxmi India Finance Limited IPO Details

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 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

As on 29-Jul-25, 5:30 PM

Laxmi India Finance IPO Timeline

  1. Pre-apply
    26 Jul 2025
  2. Bid start
    29 Jul 2025
  3. Bid end
    31 Jul 2025
  4. Allotment
    1 Aug 2025
  5. Release of funds
    4 Aug 2025
  6. Demat transfer
    4 Aug 2025
  7. Listing
    5 Aug 2025

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.

Laxmi India Finance Limited IPO Analysis

IPO REVIEW

Laxmi India Finance IPO | Analysis Video

Should you apply?

Watch our analysts break down the Laxmi India Finance Limited IPO — business model, financials, valuation and key risks — to help you decide whether to apply. The video covers the IPO price band, important dates, and what the subscription numbers mean for retail investors.

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

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.

Objectives of Laxmi India Finance Limited IPO

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

Compare

CompanyRevenue*3Y growthPATMarket capP/E ratioD/E ratio
This IPO₹245.71Cr28.50%₹36.01Cr₹825.83Cr18.004.02
This sector (avg.)₹789.63Cr0.02%₹117.25Cr₹6,213.48Cr52.320.85
₹41,701.78Cr---₹9,423.31Cr₹1,91,911.8Cr21.004.16
₹2,042.91Cr---₹1,612.59Cr₹1,61,687.5Cr100.630.03
₹20,214.17Cr---₹5,352.36Cr₹1,53,746.4Cr20.963.36

*Revenue for financial year 2024-25. Lower P/E and D/E ratios are generally preferred.

Laxmi India Finance IPO Contact Details

Company NameLaxmi India Finance Limited

How to apply for Laxmi India Finance IPO?

  1. Step 1

    Log in to your Upstox account to access IPO investments. Next, select the current IPO section.

  2. Step 2

    Specify IPO details. Enter the number of lots and the price you wish to apply for.

  3. Step 3

    Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.

  4. Step 4

    Mandate Notification. Your UPI app will receive a mandate notification to block funds.

  5. Step 5

    Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.

Laxmi India Finance Limited IPO FAQs

Investors can apply for the Laxmi India Finance IPO through their Demat account via the stock exchange or through their broker.
The issue size of the Laxmi India Finance IPO is 254 Cr.
Pre-applying for an IPO allows you to submit your application before the official subscription period begins.
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.
Laxmi India Finance IPO will be open between 2025-07-29 and 2025-07-31.
Laxmi India Finance IPO allotment date is 2025-08-04. For Laxmi India Finance IPO allotment status check, you can visit the website of the registrar of the IPO.
For Laxmi India Finance IPO, the IPO registrar is MUFG Intime India Private Limited. You can check Laxmi India Finance IPO allotment status on the website of the registrar.
The shares are proposed to be listed on the BSE and NSE.
The Laxmi India Finance IPO shares will typically be credited to your demat account one working day before the IPO's listing date, provided your application is successfully allotted.
The Laxmi India Finance IPO lot size is 94 and minimum order quantity is 94.
Laxmi India Finance IPO has set the price band for its IPO at 158 per equity share with a face value of 5.