Laxmi India Finance IPO Day 3: Apply or not? Check latest GMP, subscription status

Mint

a day ago

Laxmi India Finance launched its initial public offering (IPO) for subscription on Tuesday, July 29. The non-banking financial company (NBFC), known for its focus on MSME and vehicle loans, has set the price band for the IPO at ₹ 150 to ₹ 158 per equity share.
Retail investors can bid for a minimum of 94 equity shares and in multiples thereafter. The IPO window will remain open until Thursday, July 31, allowing investors three days to participate in the offering.
On Day 3 of the IPO, as of 10:20 am, the issue was subscribed 0.97 times, receiving bids for 1.09 crore shares against 1.13 crore shares on offer. The retail investor portion was booked 1.39 times, while the non-institutional investor (NII) segment saw 0.66 times subscription. The qualified institutional buyer (QIB) category was bid 0.45 times. Moreover, the employee quota was subscribed 1.08 times.
Shares of Laxmi India Finance were trading at a grey market premium (GMP) of ₹ 4, indicating an estimated listing price of ₹ 162 per share, up 2.53 percent over the IPO price.
However, investors are advised to treat the GMP as a rough indicator of market sentiment in the unlisted space. These premiums are speculative in nature and can fluctuate significantly ahead of the listing.
Laxmi India Finance is set to raise a total of ₹ 254.26 crore through its initial public offering (IPO), which includes a fresh equity issue of ₹ 165.17 crore and an offer-for-sale (OFS) of up to 56,38,620 equity shares, aggregating to ₹ 89.09 crore. The net proceeds from the fresh issue will be used primarily to strengthen the company's capital base, enabling it to meet future capital requirements. A portion of the funds will also be allocated toward general corporate purposes.
The IPO comes with a lot size of 94 equity shares, making the minimum investment for a retail individual investor ₹ 14,100. This structured entry point allows broader participation from small investors while ensuring an efficient capital-raising process for the company.
Ahead of the public offering, Laxmi India Finance successfully mobilised ₹ 75.5 crore through its anchor investor allocation. The company allotted 47.79 lakh equity shares at ₹ 158 apiece under the anchor book.
PL Capital Markets has been appointed as the book-running lead manager to the issue, while MUFG Intime India (also known as Link Intime) is acting as the registrar. The company's equity shares are slated for listing on both the BSE and the NSE, with the scheduled listing date set for Tuesday, August 5.
Laxmi India Finance, established in 1996, operates as a diversified financial services provider, with a primary focus on catering to the credit needs of small businesses and entrepreneurs. The company offers a range of financial products, including MSME loans, vehicle loans, construction finance, and other structured lending solutions. A significant proportion—over 80 percent—of its MSME loan book qualifies as priority sector lending, underlining its alignment with national financial inclusion goals and regulatory guidelines.
Laxmi India Finance showcased strong financial momentum in the fiscal year ending March 31, 2025. The company reported a net profit of ₹ 36.01 crore and total revenue of ₹ 248.04 crore, marking a substantial year-on-year improvement. In comparison, for the previous financial year ended March 31, 2024, it had posted a net profit of ₹ 22.47 crore on revenue of ₹ 175.02 crore. The figures reflect the company's continued growth trajectory and strengthening business fundamentals.
SBI Securities has recommended a 'subscribe with caution' rating, citing the company's prudent credit underwriting and deliberate growth strategy as positives. The brokerage highlighted that the firm's improved credit rating—from 'BBB+' in FY22 to 'A-' currently—underscores its financial discipline. While SBI Securities found the IPO attractively priced at a price-to-book value (P/BV) of 2 times for FY25, it cautioned investors about the company's relatively smaller scale of operations. It advised that the stock would be best suited to those with a high-risk appetite who are seeking high-return investments over the medium to long term.
Bajaj Broking offered a more optimistic outlook, recommending a 'subscribe for long term'. According to the brokerage, Laxmi India Finance has displayed strong financial performance, focusing on the needs of underserved customers and MSMEs. The firm has reported consistent growth in both income and profitability over the past three financial years.
According to Bajaj Broking, the IPO is priced at a price-to-earnings (P/E) ratio of 22.93 based on FY25 earnings and 36.74 based on FY24 numbers. The brokerage considers the valuation reasonable for a non-banking finance company with a focused lending model and improving profitability trajectory.
Marwadi Financial Services also assigned a 'subscribe' rating to the IPO, noting the company's strategic focus on MSME financing and the benefits of its hub-and-branch operating model. This model, it said, has enabled Laxmi India Finance to increase operational efficiency, reduce overhead costs, and improve customer accessibility. Marwadi highlighted that the IPO is reasonably priced relative to peers in the sector, making it an attractive opportunity for investors looking to participate in the expanding MSME credit market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.