About
Laxmi India Finance Limited is a non-deposit taking NBFC categorized as ‘NBFC–Middle Layer’ coming to the capital markets with its maiden IPO. Incorporated in 1996 and headquartered in Jaipur, Rajasthan, the company operates primarily in MSME financing and vehicle financing through a network of 158 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh.
The mainboard IPO comprises a fresh issue of up to 10,453,575 equity shares (face value ₹5 each) and an offer for sale of up to 5,638,620 equity shares, totaling up to 16,092,195 equity shares. As of March 31, 2025, the company has assets under management of ₹12,770.18 million and serves 35,568 customers. The equity shares will be listed on BSE and NSE, with PL Capital Markets Private Limited as the Book Running Lead Manager. The fresh issue proceeds will augment the company’s capital base for future business growth.
Please read the DRHP for more details: Click here
IPO Details
| Issue Price | 150 - 158 |
|---|---|
| Minimum Lot Size Retail | 94/Lot (14,852) |
| Maximum Lot Size Retail | 13 Lots (1,93,076) |
| S-Minimum Lot Size HNI | 14 Lots (2,07,928) |
| S-Maximum Lot Size HNI | 67 Lots (9,95,084) |
| Issue Type | Fresh Capital-cum-Offer for Sale |
| Issue Size | Total: 1,60,92,195 shares |
(aggregating up to ₹254.26 Cr)
Fresh: 1,04,53,575 shares
(aggregating up to ₹165.17 Cr)
OFO: 56,38,620 shares of ₹5
(aggregating up to ₹89.09 Cr)|
|||
IPO Timeline
| Issue Period | 29th July - 31st July 2025 |
|---|---|
| Allotment Date | 1st August 2025 |
| Refund Initiation Date | 4th August 2025 |
| Demat Transfer Date | 4th August 2025 |
| Listing Date | 5th August 2025 |
Key Strengths
- Strong position in MSME and vehicle financing: Over 90% of AUM from these sectors, with MSME AUM at 76% as of March 2025.
- Wide branch network: 158 branches across Rajasthan, Gujarat, MP, Chhattisgarh, and UP, enabling access to under-served markets.
- Diversified customer base: Serving over 35,000 customers across MSME and vehicle loans, reducing concentration risk.
- Solid financial performance: FY25 income of ₹2,480 million, PAT of ₹359 million, and consistent loan growth.
- Healthy capital adequacy and credit rating: CRAR of 20.8% (vs regulatory 15%) and improved credit rating to A- (Positive).
Key Risk Factors
- High sectoral concentration to MSME: Any stress or regulatory changes affecting MSMEs could impact the company materially.
- Dependence on external borrowings: Adverse changes in funding access, cost, or credit rating may affect liquidity and growth.
- Regional concentration: Operations mainly in Rajasthan and nearby states; regional disruptions can severely affect business.
- Credit and asset quality risk: Loans to self-employed and rural MSMEs carry higher default probability, even if NPAs are low.
- Strict and evolving regulatory requirements: Delays or non-compliance with RBI/SEBI regulations can lead to penalties or restrictions.
Check the Allotment Status:
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Laxmi India Finance Limited – Key Financial Metrics
| Financial Metric | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|
| Revenue from Operations (₹ Lakhs) | 24,801.30 | 17,501.80 | 13,066.80 |
| Operating Profit Margin (%)* | ~19.10% | ~16.96% | ~16.90% |
| Profit After Tax – PAT (₹ Lakhs) | 3,591.00 | 2,262.10 | 1,602.80 |
| Cash & Cash Equivalents (₹ Lakhs)† | 1,024.30 | 422.70 | 952.84 |
| Return on Capital Employed – ROCE (%)‡ | 15.0% (Approx.) | Not explicitly stated | Not explicitly stated |
| Return on Equity – ROE (%)§ | 15.7% | 12.8% | 11.5% |
| Earnings Per Share – EPS (₹) | 8.78 | 6.11 | 5.02 |
IPO FAQs
What is an IPO and how does it work?
An IPO (Initial Public Offering) is when a private company offers its shares to the public to raise capital and becomes publicly listed. In India, companies list their shares on exchanges (NSE/BSE) through IPOs. During the IPO subscription period, investors bid for shares via a broker or trading app. After the IPO closes, shares are allotted to investors and start trading on the stock market.
How to apply for an IPO with Zerodha or Upstox?
You can apply through online brokers like Zerodha or Upstox. For example, Zerodha’s Kite platform lets you apply via UPI or ASBA: log in to Kite, go to Bids → IPO → Apply, select the IPO, enter your bid quantity and price, submit, and approve the UPI mandate. Upstox works similarly: log in to the Upstox app or website, find the IPO section, select the IPO, enter lot size and bid price, input your UPI ID, and authorize the payment. Make sure your Demat account and linked bank account are ready before applying.
How is an IPO allotted to investors?
IPO shares are allocated by category. Typically, Indian IPOs have quotas for Retail, High Net Worth Individuals (HNIs), and Qualified Institutional Buyers (QIBs). Retail and HNI allotments usually use a lottery if oversubscribed, whereas QIBs get prorata allotment. For example, if demand from retail investors far exceeds available shares, a lottery (draw) decides who gets shares. Unsuccessful applicants simply get their blocked funds released.
What is GMP (Grey Market Premium) in an IPO?
GMP stands for Grey Market Premium. It is the unofficial premium above the IPO price that shares trade for in the grey market before listing. For example, if an IPO is priced at ₹100 and grey market traders are paying ₹120 per share, the GMP is ₹20. A positive GMP indicates strong demand and suggests potential listing gains, but remember this market is unregulated and unofficial, so GMP is only an indicative signal, not a guarantee.
What is the IPO calendar and where can I find upcoming IPOs?
An IPO calendar is a schedule of upcoming IPO issues (opening/closing dates, sizes, etc.). In India, IPO calendars are published on financial websites and exchange portals. For instance, sites like Chittorgarh or IPOWatch list upcoming IPOs and their timelines. You can also check NSE or BSE official websites under “New Listings” or “Upcoming Issues” for authoritative updates.
What are IPO listing gains and how do they work?
Listing gain is the profit an investor makes if a stock’s listing (opening) price is higher than its IPO issue price. In other words, if you bought at ₹150 and the stock opens at ₹200 on day one, your listing gain is ₹50 per share. Many investors apply to IPOs hoping for such gains. However, share prices can also fall on listing day if demand is weak, so listing gains are not guaranteed.
How does an IPO give profit to investors?
Investors profit from IPOs mainly in two ways: listing gains and longterm growth. On listing day, a share price often jumps if demand is strong, yielding an immediate gain. Over the longer term, if the company performs well, investors can earn from stock price appreciation. As one analysis notes, IPO investors aim for “longterm stock growth or immediate listing gains”. Always remember that IPOs carry risk, so profits depend on both market demand and company fundamentals.
Which IPO is best to buy today?
There’s no one “best” IPO to buy; it depends on the company’s fundamentals and market sentiment. Indian investors typically check the IPO’s prospectus, valuation, and oversubscription levels. The grey market premium (GMP) can give a clue: a high GMP suggests strong demand and potential listing gains. For example, if a GMP is ₹30 on a ₹100 issue, investors expect about a ₹30 upside on listing. However, always do your research on the business model and pricing. High demand or a big GMP doesn’t guarantee a profitable investment, so choose IPOs carefully.
Are IPOs safe investments?
IPOs can be profitable but come with risk. Often a heavily oversubscribed IPO will see a big price jump on day one (strong initial demand). However, many factors affect postlisting performance. As noted, “a high oversubscription does not always mean strong postlisting performance”. New IPO companies may be volatile initially, so share prices can fall if market conditions change. Retail investors should be cautious: IPO gains can be high, but IPOs also carry uncertainties and require strong risk tolerance.
How to check IPO allotment status?
After the allotment date, you can check your IPO status on exchange or registrar websites. For example:
- BSE: Go to BSE’s “Application Status Check”, select Equity, pick the IPO and enter your PAN or application number.
- NSE: Visit NSE’s “Application Status Check” under Resources/Tools, select your IPO, and enter your PAN/application details.
This will show whether your bid was allotted and how many shares you got. You can also check the registrar’s site (e.g. Bigshare, KFintech) by entering PAN or application number as guided.