Laxmi India Finance IPO Price: ₹150 to ₹158 per share
IPO Dates: 29th July 2025 – 31st July 2025
Company Overview
Laxmi India Finance Ltd. is a non-deposit taking Non-Banking Financial Company (NBFC) classified under the ‘Middle Layer’ by the Reserve Bank of India (RBI). Originally incorporated as ‘Laxmi India Finleasecap Pvt. Ltd’ in May 1996, the company changed its name to ‘Laxmi India Finance Pvt. Ltd.’ in January 2023. In August 2024, it became a public limited company and adopted its current name. The company primarily operates in the Micro, Small and Medium Enterprises (MSME) and vehicle financing verticals.
Operational Presence
As of March 31, 2025, Laxmi Finance operated through 158 branches across rural, semi-urban, and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. The company has the widest branch network in Rajasthan compared to its peers. Its extensive distribution system includes on-ground sales teams, tele-marketing support, direct sales associates, and digital channels, enabling it to bridge the financial inclusion gap effectively.
Product Portfolio
Laxmi India Finance Ltd. offers a diversified range of lending products tailored to the varied financial needs of its customer base. These include:
- Other Loans: Small-ticket unsecured loans for MSME and retail customers and wholesale loans to other NBFCs.
- MSME Finance: Secured loans against property to support business operations, expansion, and working capital needs.
- Vehicle Finance: Secured loans for used commercial and personal vehicles, tractors, two-wheelers, and electric vehicles.
- Construction Loans: Secured loans for residential property purchases or home construction, renovation, or extension.
The company has an installed annual production capacity of 2,700 kg, enabling it to meet growing demand efficiently and with precision.
Customer Base and Inclusion
As of March 31, 2025, Laxmi Finance served 35,568 customers—up 48.78% from 23,906 in the previous year—including 18,596 active MSME customers and 12,423 active vehicle loan customers. The customer base is diverse, spanning different income levels, occupations, geographies, and credit histories. Notably, 37.10% of the customers were first-time borrowers, reflecting the company’s commitment to financial inclusion.
Risk Management and Asset Quality
Laxmi Finance has built strong risk management systems. It uses comprehensive credit assessments, CIBIL score evaluations, and a centralized, technology-enabled collections infrastructure. The collections team, comprising 357 personnel as of May 31, 2025, achieved collection efficiencies of 98.92% in FY23, 96.69% in FY24, and 96.76% in FY25. The company reported a Gross NPA (GNPA) of 1.07% and Net NPA (NNPA) of 0.48% in FY25, indicating strong asset quality.
Capital and Funding
The company maintains a conservative Asset Liability Management (ALM) approach. As of March 31, 2025, its Capital Adequacy Ratio stood at 20.80%, well above the RBI’s minimum requirement of 15.00%. It has access to funding from 47 lenders, including 8 public sector banks, 10 private banks, 7 small finance banks, and 22 NBFCs and financial institutions. Funding instruments include term loans, NCDs, working capital demand loans, and overdrafts.
Technological Integration
Technology is embedded across Laxmi Finance’s operations—from loan origination and underwriting to post-disbursement monitoring and customer service. The company’s system-driven approach enhances risk assessment accuracy and lending decisions.
Market Opportunity
The rising demand for retail and MSME credit in India, driven by the increase in retail credit from 21.6% in FY19 to a projected 32.1% in FY25, presents strong market potential. Laxmi Finance, with its digital-first strategy and wide distribution network, is well-positioned to capitalize on this trend.
Credit Rating and Cost of Funds
The company’s credit rating improved from ‘BBB+’ to ‘A- with a positive outlook’ by Acuite Ratings. Its average cost of borrowing reduced from 12.24% in FY23 to 12.02% in FY25, aided by better ratings and enhanced partnerships with public sector entities.
Competitive Strengths
- Focus on MSME Financing: Catering to an underserved but growing segment.
- Diversified Capital Sources: Funding access from a wide range of institutions.
- Robust Credit and Risk Management: Technology-led processes ensure efficient underwriting.
- Regional Penetration: Strong presence in semi-urban and rural India.
- Hub and Branch Model: Streamlined operations and cost efficiency.
- Experienced Management: Sound governance and execution capabilities.
Bidding Starts In
Laxmi India Finance IPO Specifics:
| IPO Date | July 29, 2025 to July 31, 2025 |
| Listing Date | Tuesday, August 5 2025 |
| Face Value | ₹5 per share |
| Price Band | ₹150 to ₹158 per share |
| Lot Size | 94 Shares |
| Total Issue Size | 1,60,92,195 shares (aggregating up to ₹254.26 Cr) |
| Fresh Issue | 1,04,53,575 shares (aggregating up to ₹165.17 Cr) |
| Offer For Sale | 56,38,620 shares (aggregating up to ₹89.09 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 4,18,14,300 shares |
| Share Holding Post Issue | 5,22,67,875 shares |
Laxmi India Finance IPO Timetable (Important Dates)
| IPO Open Date | Tuesday, July 29 2025 |
| IPO Close Date | Thursday, July 31 2025 |
| Basis of Allotment | Friday, August 1 2025 |
| Initiation of Refunds | Monday, August 4 2025 |
| Credit of Shares to Demat | Monday, August 4 2025 |
| Listing Date | Tuesday, August 5 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 31, 2025 |
Laxmi India Finance IPO Lot Size
Bidders have the opportunity to bid for a minimum of 94 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 94 | ₹14,852 |
| Retail (Max) | 13 | 1,222 | ₹1,93,076 |
| S-HNI (Min) | 14 | 1,316 | ₹2,07,928 |
| S-HNI (Max) | 67 | 6,298 | ₹9,95,084 |
| B-HNI (Min) | 68 | 6,392 | ₹10,09,936 |
Laxmi India Finance IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Laxmi India Finance Limited IPO Financial Information
| Period Ended | 31 Mar 2023 | 31 Mar 2024 | 31 Mar 2025 |
|---|---|---|---|
| Assets | 778.71 | 984.85 | 1412.52 |
| Revenue | 130.67 | 175.02 | 248.04 |
| Profit After Tax | 15.97 | 22.47 | 36.01 |
| EBITDA | 85.96 | 114.59 | 163.88 |
| Net Worth | 152.33 | 201.22 | 257.47 |
| Reserves & Surplus | 134.23 | 181.87 | 236.99 |
| Total Borrowing | 615.49 | 766.68 | 1137.06 |
Key Performance Indicator – Laxmi India Finance IPO
| KPI | Values |
|---|---|
| Market Cap | ₹825.83 Cr |
| EPS | 8.61 |
| P/E (x) | 18.35 |
| PAT Margin | 14.48% |
| RoNW | 13.95% |
| Debt/Equity | 4.42 |
Objects of the Issue:
Laxmi India Finance proposes to utilise the net proceeds from its Initial Public Offering (IPO) primarily for strengthening its capital base. The funds will be used to support the company’s future capital requirements, particularly to enhance its capacity for onward lending. This capital infusion will enable the company to scale its lending operations and expand its reach across existing and new markets.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
