IPO Snapshot
Price Band: ₹150–₹158
Issue Size: ₹254.3 crore (fresh issue + OFS)
Minimum Investment: ₹14,852 (1 lot = 94 shares)
Listing Date: August 5, 2025
Grey Market Premium (GMP): ₹8–₹10 (~5% expected listing gain)
Company Overview
Laxmi India Finance is a Rajasthan-based NBFC specializing in MSME, vehicle, and construction equipment loans. With 158 branches across rural and semi-urban regions, it caters to underserved customers in 5 Indian states.
Key Strengths:
80% of portfolio in priority sector lending
Asset quality: GNPA ~1.07%, NNPA ~0.48%
Revenue grew ~42% YoY (₹248 Cr FY25)
Net profit jumped from ₹22.5 Cr to ₹36 Cr in one year
Capital adequacy ratio (CRAR): ~20.8%
Valuation Check
P/E Ratio: ~22.9x FY25 earnings
P/B Ratio: ~2.1x
Comparatively fair among small NBFCs, though not cheap
Focused on profitability and controlled expansion
Market Response
Day 1 Subscription: ~32%
Day 2 Subscription: ~50%, mostly retail and HNI
GMP of ₹8–₹10 suggests a mild 5% upside on listing
No signs of aggressive oversubscription yet
Reasons to Subscribe
Stable asset quality and focused growth
Consistent financial performance
Decent valuation for long-term hold
Rural and MSME lending has policy support
Reasons to Be Cautious
Limited scale vs larger NBFCs
Heavily concentrated in Rajasthan
Listing gain likely capped at 5–6%
Market is IPO-heavy; investor attention may be divided
Investment Scenarios
| Scenario | Outcome |
|---|---|
| Listing at ₹166 | Gain of ₹800 per lot (~5%) |
| Long-term Hold | Higher potential as MSME credit demand rises |
| Underperformance | Minor downside if listing below issue price |
Final Verdict
Should you subscribe?
✅ Yes, for long-term investors who want exposure to rural MSME lending
⚠️ Cautious yes, for listing gain seekers — don't expect more than 5–6% pop
❌ Skip if you're looking for quick 20–30% returns or are risk-averse
FAQs
Q1. Is Laxmi India Finance a high-risk IPO?
It’s moderately risky due to its small scale and regional focus, but its asset quality and profit growth provide some comfort.
Q2. What’s the main use of IPO proceeds?
To increase the loan book and expand branch operations in underserved areas.
Q3. Is it good for long-term investment?
Yes, if you believe in India's MSME credit story and rural financial inclusion.
Q4. What date will the shares list?
The listing is expected on August 5, 2025, on NSE and BSE.
Published on : 31st July
Published by : SMITA
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