Laxmi India Finance IPO subscribed 50% on Day 2 so far, GMP signals 5% listing pop. Should you subscribe?
ADVERTISEMENT By 11:00 AM on day 2, the retail tranche had been bid by 83%, while the non-institutional investor (NII) category saw 26% subscription. The quota for qualified institutional buyers (QIBs) received 10% bids.
As of July 30, the grey market premium (GMP) for Laxmi India Finance IPO stood at Rs 8.25. With the IPO's upper price band set at Rs 158 per share, the implied listing price is Rs 166.25, a gain of about 5.2%.
The IPO, which opened for subscription on July 29 and closes on July 31, is a book-built issue with a price band of Rs 150–158 per share. It comprises a fresh issue of 1.04 crore equity shares worth Rs 165.17 crore and an offer for sale (OFS) of 56.38 lakh shares worth Rs 89.09 crore by existing shareholders.The company intends to utilise the net proceeds from the fresh issue to strengthen its capital base and support future lending operations.
ADVERTISEMENT Shares are proposed to be listed on both the BSE and NSE, with a tentative listing date of August 5.Retail investors can bid for a minimum lot size of 94 shares, amounting to Rs 14,852 at the upper end of the price band.
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Laxmi India Finance has built a strong footprint in rural and semi-urban lending. As of March 2025, the company reported assets under management (AUM) of Rs 1,277 crore, with MSME loans accounting for 76.34% of the portfolio. The loan book spans Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, supported by a branch network of 158 offices and over 35,500 active borrowers, many of them first-time credit customers.
ADVERTISEMENT The company's revenue surged 42% year-on-year to Rs 248 crore in FY25, while profit after tax climbed 60% to Rs 36 crore. Backed by high-yield lending products and a focus on underserved markets, Laxmi India Finance positions itself as a scalable play on India's growing formal credit ecosystem.Bajaj Broking recommends subscribing to the IPO from a long-term investment perspective. 'Laxmi India Finance Limited (LIFL) focuses on catering to the financial needs of underserved customers, particularly in the MSME segment. Over the past three fiscal years, the company has shown steady growth in both total income and net profit, reporting Rs 130.67 crore / Rs 15.97 crore in FY23, Rs 175.02 crore / Rs 22.47 crore in FY24, and Rs 248.04 crore / Rs 36.01 crore in FY25,' the brokerage noted.
ADVERTISEMENT The company's average earnings per share (EPS) over the last three years stood at Rs 7.26, with an average return on net worth (RoNW) of 14.01%. Based on FY25 annualised earnings, the IPO is priced at a price-to-earnings (P/E) ratio of 22.93, and 36.74 based on FY24 earnings, according to the brokerage.PL Capital Markets is managing the IPO, while Link Intime has been appointed as the registrar.
Also read | Aditya Infotech IPO GMP hints at 38% listing pop. Some brokerages say subscribe, others warn of risks
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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