Latest news with #Jaipur-based
News18
9 hours ago
- Business
- News18
Laxmi India Finance IPO subscribed 1.85 times
Agency: Last Updated: July 31, 2025, 19:00 IST Representational image (Image: News18) New Delhi, Jul 31 (PTI) The initial public offering of NBFC player Laxmi India Finance Ltd got subscribed 1.85 times on the closing day of the share sale on Thursday. The initial share sale received bids for 2,09,59,744 shares against 1,13,12,816 shares on offer, according to NSE data. The quota for retail individual investors got subscribed 2.19 times while the portion for non-institutional investors received 1.83 times subscription. Qualified institutional buyers (QIBs) part got subscribed 1.30 times. Laxmi India Finance Ltd on Monday raised over Rs 75 crore from anchor investors. The issue has a price band of Rs 150-158 per share. The Jaipur-based company's IPO is a combination of fresh issue of 1.04 crore equity shares and an offer for sale of 56.38 lakh shares by promoters. Overall, the IPO size is pegged at Rs 254.26 crore at the upper end of the price band. Proceeds from the fresh issue will be used to shore up its capital base to meet future capital requirements towards onward lending and for general corporate purposes. Laxmi India Finance, a non-deposit-taking NBFC, offers a diverse product portfolio, including MSME (micro, small and medium enterprises) loans, vehicle loans, construction loans, and other lending solutions to customers. Swipe Left For Next Video View all Its operational network spans across 158 branches in rural, semi-urban, and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh as of March 2025. PL Capital Markets is the sole book running lead manager to the IPO. PTI SUM TRB (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments News agency-feeds Laxmi India Finance IPO subscribed 1.85 times Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Read More
Hindustan Times
a day ago
- Hindustan Times
Crypto racket: Security guard held in Rajasthan's Bhiwadi for abducting businessman
New Delhi, A 31-year-old man, who worked as a security guard, has been arrested for allegedly abducting a Jaipur-based businessman from the IGI Airport here by luring him into a cryptocurrency transaction, an official on Wednesday said. Crypto racket: Security guard held in Rajasthan's Bhiwadi for abducting businessman The man, who was wanted in two high-profile cases of abduction for ransom and robbery registered at Delhi's IGI Airport and Janakpuri police stations, has been arrested by the Crime Branch, he said. The accused, identified as Maninder alias Monu, a resident of Rewari in Haryana, was declared a proclaimed offender and had been evading arrest while working as a security guard in a company in Rajasthan's Bhiwadi under a false identity. "Maninder is a known member of the notorious Papla-Mahakal gang of Rajasthan and has a long history of involvement in heinous crimes across Delhi, Haryana and Rajasthan," said the officer. Maninder along with his associates abducted a Jaipur-based businessman from the IGI Airport in 2023 by luring him into a cryptocurrency transaction, he added. The officer said that the accused robbed him of cash, mobile phones and debit cards. He was initially arrested and later jumped bail after which he was declared a proclaimed offender. An FIR was registered and further investigation was taken up, he added. In another case, Maninder and his associates allegedly kidnapped another victim in 2018 under the pretext of a Bitcoin transaction, the officer said. A ransom of ₹1.3 lakh via online payment method was transferred by the victim's friend to secure his release. Maninder was named as one of the key conspirators and was declared a proclaimed offender in this case as well, he added. Acting on a tip-off, a police team earlier on Tuesday laid a trap in Rajasthan's Bhiwadi and apprehended the accused, the officer said. Maninder had been frequently changing locations and had disguised himself as a security guard at a private company in Tappukhera, Bhiwadi, to avoid detection, he added. Maninder disclosed during interrogation that he came into contact with the Papla-Mahakal gang after working with members of the Lawrence Bishnoi-Rohit Godara syndicate, police said. He had also tried to eliminate a rival liquor distributor in Rajasthan after a fallout. Further investigation is underway to trace the other gang members, they said. This article was generated from an automated news agency feed without modifications to text.
News18
a day ago
- Business
- News18
Day 2 of IPO: Laxmi India Finance share sale subscribed 88 pc
Agency: New Delhi, Jul 30 (PTI) The initial public offer of NBFC player Laxmi India Finance Ltd got subscribed 88 per cent on the second day of the share sale on Wednesday. The initial share sale received bids for 99,71,708 shares against 1,13,12,816 shares on offer, according to NSE data. Retail Individual Investors (RIIs) quota got subscribed 1.28 times. The category for non-institutional investors received 52 per cent subscription while the portion for Qualified Institutional Buyers (QIBs) fetched 45 per cent subscription. Laxmi India Finance Ltd on Monday raised over Rs 75 crore from anchor investors. The issue, with a price band of Rs 150-158 per share, will conclude on Thursday. The Jaipur-based company's IPO is a combination of fresh issue of 1.04 crore equity shares and an offer for sale of 56.38 lakh shares by promoters. Overall, the IPO size is pegged at Rs 254.26 crore at the upper end of the price band. Proceeds from the fresh issue will be used to shore up its capital base to meet future capital requirements towards onward lending and for general corporate purposes. Laxmi India Finance, a non-deposit-taking NBFC, offers a diverse product portfolio, including MSME (micro, small and medium enterprises) loans, vehicle loans, construction loans, and other lending solutions to customers. Its operational network spans across 158 branches in rural, semi-urban and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh as of March 2025. PL Capital Markets is the sole book-running lead manager to the IPO. PTI SUM SUM MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 30, 2025, 19:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
a day ago
- Business
- Mint
The mystery stock from Jaipur leading India's bank index in 2025
New Delhi: 2 May 2016 Stamford Bridge football stadium, London. As the final whistle blew on a fiery draw between Chelsea and Tottenham Hotspur, a raucous cheer erupted from an unlikely corner of the crowd. It wasn't the match result they were celebrating, but one of the most astonishing moments in modern sporting history—lowly Leicester City, which had narrowly staved off relegation in the previous season, was crowned Premier League champions for the first time in their 132-year history. Leicester City had earned a promotion to the top tier in English football just two years earlier. At the beginning of the 2015-16 season, bookmakers had given the team odds of 5,000-1 for winning the title. For context, the odds of Elvis Presley being found alive was 2000-1. In other words, Leicester's chances of being crowned the champions of English football were lower than Elvis being found alive. And yet, the unthinkable had happened. The unheralded team with a modest wage bill had trumped the Premier League powerhouses like Manchester City, Manchester United, Arsenal and Chelsea. Rank outsiders emerging on top always leaves behind a trail of heartbreak, euphoria and bewilderment. Not to mention a scramble for explanations. Something similar is underway on Dalal Street, where the unlikeliest of candidates has emerged as Nifty Bank Index's top performer this year—AU Small Finance Bank. It not only has the smallest weightage in the grouping but also the only one without a universal banking licence. As yet. But as the lender's June quarter (Q1) show suggests, while scale is not a prerequisite for strong execution, the market may well be rewarding promise more than performance at this juncture. The Edge Comparison may be the thief of joy, but in the markets at least, It is often the starting point of conviction. AU Small Finance Bank posted a decent showing in Q1FY26, with net profit climbing 16% on-year to ₹581 crore on the back of an 18% jump in net total income. But it is only when set against the backdrop of the sector's leaders that its outperformance in many critical areas stands out. Take credit growth, for example. At a time when the sector is facing strong headwinds in the form of slowing credit expansion, the Jaipur-based company posted a loan growth of 18% over the year-ago quarter. To put things in perspective, the country's largest private sector lender HDFC Bank's gross advances inched up 6.7% in Q1. While this is quite understandable, given that it has been consciously moderating loan growth to bring down its credit-deposit (CD) ratio closer to levels before its merger with HDFC, even ICICI Bank, arguably the Street's favourite private sector lender currently, reported domestic credit growth of 12%. AU Small Finance Bank's management has reiterated its target of achieving loan growth of 2 to 2.5-times the nominal GDP growth. System credit has been sputtering since the second half of FY25 amid macroeconomic headwinds and a marked slowdown in domestic consumption. While FY26 is showing incipient signs of a revival in consumption, credit demand remains muted. According to data from the Reserve Bank of India (RBI), system credit growth softened from 14-16% in the year-ago quarter to 11-13% in second half of FY25, and further to about 9-11% in Q1 this year. Similar is the case with deposits. Banks are finding it tough to mobilise deposits in an environment of low interest rates, with investors channeling their savings towards other avenues like equity markets. System deposit growth slowed to 10.6% in FY25 from 13% in the previous financial year. In this context, AU Small Finance Bank's deposit growth of 31% in Q1, compared to the year-ago period, stands out. More so, given the 16.2% deposit growth of HDFC Bank and 12.8% of ICICI Bank. That said, comparing a small finance bank with the sectoral behemoths would elicit a derisive snort from statistical puritans. After all, the small bank's deposit base of ₹1.28 trillion operates in a different mathematical universe when compared to HDFC Bank's ₹27.64 trillion and ICICI Bank's ₹16.08 trillion. But even under-the-hood metrics show an edge for AU Small Finance Bank. The firm's net interest margin (NIM)—a key measure of banks' core profitability—is higher than the industry stalwarts. NIM is a measure of the difference between the interest earned by a bank on its loans and securities and what it pays out to depositors. Similarly, its pre-provision operating profit (PPoP), which is a key financial metric representing a bank's core operating performance before accounting for provisions for potential loan losses, surged 38% on-year, compared to 11% for ICICI Bank. The small bank's earnings per share (EPS) growth— arguably the most important yardstick from a stock market perspective—stood at 15.2% in Q1, compared to 11.4% for HDFC Bank and 13.8% for ICICI Bank. Words of Caution However, this is not to suggest that the Q1 numbers were an all-round success. For instance, NIMs dropped to 5.4% from 6% in the corresponding quarter of the previous financial year, in tandem with other lenders grappling with the challenge of declining interest rates on loans and stickier rates on deposits. More worryingly, AU Small Finance Bank's asset quality has shown a marked deterioration, albeit in a seasonally weak quarter. Gross non-performing assets (GNPA) ratio rose to 2.47% in Q1 FY26 compared to 1.78% in the year-ago quarter, while net NPA ratio climbed to 0.88% from 0.63% in the same period. The micro finance segment (MFI) is also seeing stress, with GNPA ratio at 4.1%. 'The projected credit cost for MFI in FY26 has been revised upward, with the segment now expected to incur a 5% credit cost compared to the earlier guidance of 3%," Centrum Institutional Equities stated in a note. Apart from lower collection efficiency in the MFI segment, the management has also flagged concerns in the mortgage book in the southern states (mostly belonging to Fincare Small Finance Bank, which was merged into AU Small Finance Bank in April 2024), as well as some stress in its credit cards portfolio. 'On unsecured retail loans, recovery in asset quality seems to be delayed than earlier expectations, but we seem to have better visibility on 2H FY26. Management has highlighted stress in certain pockets of secured retail businesses (mortgages in southern India and small commercial vehicles); we are unsure about the eventual credit cost outcome of these issues," analysts at Kotak Institutional Equities noted. 'We are unsure if asset quality is at its best for the bank. We are also unsure if the broader operating environment is favourable enough for the bank to deliver strong loan growth," it added. While some analyst commentary is understandably cautious, the stock's chart-topping 30% rally this year so far exhibits a peculiarity of the market—it is a forward-looking mechanism, which assigns a greater weightage to what a company might become than what it is currently. And this is where AU Small Finance Bank might be punching above its weight. God of Small Things Small Finance Banks (SFBs) were introduced in India in 2014 as a distinct class of lenders aimed at deepening financial inclusion. Unlike payments banks, SFBs are permitted to both accept deposits and offer loans, with a focus on serving segments traditionally under-represented in formal banking, like small and marginal farmers, micro and small enterprises (MSMEs), and low-income households. As per rules, SFBs need to keep at least 75% of their loans below ₹25 lakh and at least 25% of their branches must be in rural areas that lack banking services. This is in contrast to universal banks, which have no such restrictions, besides ensuring that 40% of their loans are given to priority sectors like agriculture, MSME etc. Universal banks cater to a broader range of customers, including large corporates and government entities. They offer a wide range of services like investment banking, corporate banking, among others. For entities engaged in the lending business, securing an universal banking licence is seen as the pinnacle of financial evolution, marking their elevation from niche operations to a coveted seat at the big table. In August 2016, the RBI introduced the 'on tap' licensing policy for universal banks, allowing eligible entities like SFBs to apply for a banking licence at any time. The applicants have to meet a number of stringent criteria, including those related to minimum net worth, operational parameters, capital adequacy, NPA levels, board structure and others. AU Small Finance Bank, which began operations as AU Financiers in Jaipur in 1996 and became an SFB in 2017, applied for a universal banking licence on 3 September last year. The stock, which was trading in the range of around ₹600- ₹640 in August 2024, surged to ₹750 levels in September after its application was filed, before succumbing to profit booking. After a quiet few months, the counter resumed its upward trajectory April 2025 onwards. A rule of thumb in equities is that markets move first, news follows later. Is this what is transpiring in the stock currently, especially given that the positives and negatives seem to be evenly matched in its quarterly numbers? Licence to rally We believe the rally is largely driven by optimism around its application for a universal banking licence," Asutosh Mishra, head of research at Ashika Institutional Equity, told Mint. 'If approved, the licence would mark a strategic milestone—enabling the bank to expand its product offerings, diversify its balance sheet, and significantly lower its cost of funds," he added. The market, therefore, is pricing in the transformational potential of AU Small Finance Bank becoming a full-service bank. The bank declined to comment for this story. However, at its earnings call earlier this month, Sanjay Agarwal, the company's founder, managing director and chief executive officer, indicated that a decision on its licence is expected soon. 'I believe that this year, the decision should be made. I'm not sure what decision…but it's already 10 months since our application," he told analysts. He also exuded confidence about the company's margin pressure stabilising from Q3 onwards, given that around two-thirds of its portfolio is fixed rate. Stress in the MFI and credit cards segments could ease from next year, the founder added. Interestingly, another universal banking licence contender, Ujjivan SFB, which submitted its application in February 2025, too is seeing a similar rally on the bourses, with its stock surging over 35% year-to-date. Second-guessing the regulator is a dangerous game, but at an event in the national capital last week, RBI governor Sanjay Malhotra reiterated the central bank's objection to allowing corporates obtain banking licences, citing 'conflict of interest". Market watchers say this increases the chances of standalone SFBs obtaining the coveted banking licence. However, it is important to note that no licenses have been issued yet since RBI announced the 'on tap' licensing policy in August 2016. The last time universal banking permits were issued was in 2015, when IDFC and Bandhan Bank received the go ahead. 'Promising franchise' Some analysts also maintain that the investment thesis for smaller lenders goes beyond whether they are able to secure a banking licence or not. 'We believe small and mid-sized banks are well-positioned to outperform, especially in the evolving interest rate environment," Ashika Institutional Equity's Mishra said. 'These banks typically have a higher reliance on term deposits, and with RBI's recent pivot towards easing—through both rate cuts and liquidity infusion—they stand to benefit more meaningfully from lower funding costs as their deposit base gets repriced. While stock selection remains important, the macro tailwinds clearly favour nimble, deposit-sensitive lenders in this phase," he added. However, there is no denying the anticipation which has built up in counters like AU Small Finance Bank. Motilal Oswal expects the bank to maintain its growth leadership in the sector. That said, the domestic brokerage house has slashed its earnings estimate by 0.7% and 3.8% for FY26 and FY27, respectively. 'After a sharp recent outperformance, we see limited near-term catalysts for the stock. However, we believe that AU Small Finance Bank has the potential to emerge as a promising franchise over the medium term, especially after it secures the universal bank license," it stated in a note. Short-term exuberance may be enough to lift a stock, but only long-term execution cements a company's place at the table. Banking licence or not, this is what will determine its next phase of growth.
The Hindu
2 days ago
- Lifestyle
- The Hindu
Farak to champion eco streetwear at CDC Finals, Lakmé Fashion Week
For 26-year-old Rishabh Kumar, venturing into the world of fashion was not part of his life plan. A national-level athlete (football, long jump, cricket, and triple jump), Rishabh returned to India in 2016 after his schooling in Dubai, and had to drop out of college due to financial issues at home. 'I had a lot of free time, and was drawn towards fashion, particularly streetwear,' says Jaipur-based Rishabh. 'I started visiting artisans and took three years to develop Farak, a brand that I officially launched in 2022 with Rajat Sharma (who comes with a background in exports) as co-founder,' says the entrepreneur who is a finalist at R|Elan Circular Design Challenge (CDC). Organised by Reliance Industries' R|Elan (an initiative aimed at promoting sustainable and circular fashion practices) in partnership with the United Nations in India and Lakmē Fashion Week, the finals will be held at Lakmē Fashion Week x FDCI this October. Known for their T-shirts, shirts, jackets, and bombers that spotlight craft techniques such as Bagru and dabu block printing, Farak is based on the idea of representing India's artisan communities. 'I did not have many vendors in Jaipur and decided to champion the craft the city is known for: block printing. Working with blocks isn't possible on polyester so I switched to cotton,' he says, 'I don't have a background in fashion, but I wanted to ensure the artisans get credit for these crafts that have stood the test of time,' he says of the brand that spotlights upcycling techniques. Keeping India's craft culture relevant for younger generations is something Rishabh stresses on. For the CDC competition, he introduced two looks: a dabu block-printed, upcycled hoodie and pant set, and a five-piece upcycled co-ord set. Sustainability came as a by-product. 'For the latter, upcycled cotton fabric was cut into thin stripes and hand-spun into a woven yarn. This went into the fabric of the jacket and pants. The shirt was made with Assam's 'Ahimsa' eri silk, and the turtleneck sleeveless tee was made from leftover surplus cotton T-shirt rib which was further hand-dyed using natural colours,' explains Rishabh, adding that these outfits were created with zero electricity. For the finale, he plans to present womenswear, a category he launched this year. 'I am designing an overcoat with the bagry and tie-dye techniques. Instead of going with traditional fusing, which uses polyester, we are creating a new technique that involves rice starch and resin on fabric,' says Rishabh, who is also working on his Autumn-Winter collection that will be launched in October. The range, he says, will have a refined expression of Indian silhouettes and garments including womenswear inspired from the choli, blouse, Anarkali, to name a few. We are exploring fabrics such as pashmina, cashmere, silk and yak wool, alongside hand-knitted hoodies and jackets by the tribal communities of Gujarat, Assam.' In addition, Farak's collaboration with footwear brand Comet that 'features a 100% cotton, block-printed shoe' will also be launched in November.
