The Rs 254.26-crore IPO, comprising a fresh issue and an offer for sale, closed with a healthy 1.86 times overall subscription, with strong retail participation at 2.20 times.
Incorporated in 1996, Laxmi India Finance is a regional NBFC with a stronghold in Rajasthan and presence across Gujarat, Madhya Pradesh, and Chhattisgarh. It focuses on priority-sector lending to MSMEs and vehicle loan customers. As of March 2025, its AUM stood at Rs 1,277 crore, with MSME lending making up over 76% of the portfolio.
The IPO was priced at Rs 158 per share, valuing the company at Rs 826 crore market cap post-issue. It reported a net profit of Rs 36 crore on revenues of Rs 248 crore in FY25, reflecting YoY growth of 60% and 42%, respectively.
Analysts view the stock as fairly valued, though opinions are divided due to its regional focus, high leverage, and moderate asset quality indicators. Still, its efficient hub-and-spoke model, tech-enabled sourcing, and high first-time borrower base support its long-term lending strategy.
The stock will list on both NSE and BSE on August 5, and early trade will reveal whether the slight GMP translates into listing-day gains or if the counter sees muted action.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
