Laxmi India Finance Limited is launching its Initial Public Offering (IPO) to strengthen the capital base and support future lending and business growth. The IPO comprises a fresh issue of 1.05 crore shares aggregating to Rs. 165.17 crores and an offer for sale of 0.56 crore shares aggregating to Rs. 89.09 crores with a face value of Rs. 1 each.
The total offer size aggregates up to Rs. 254.26 crore. The IPO opens for subscription on July 29, 2025, and closes on July 31, 2025. The shares will be listed on both the NSE and the BSE after the IPO concludes.
GMP of Laxmi India Finance Ltd IPO
As of July 28th, 2025, the shares of Laxmi India Finance Ltd in the grey market were trading at an 8.23 percent premium. The shares in the Grey Market traded at Rs. 171. This gives it a premium of Rs. 13 per share over the cap price of Rs. 158.
Overview of Laxmi India Finance
Laxmi India Finance Limited, Incorporated in 1996, is a Non-Banking Financial Company (NBFC) focused on providing financial solutions to underserved segments. The company primarily offers MSME loans, vehicle finance, and construction loans, with over 80% of MSME loans qualifying as Priority Sector Lending, supporting small businesses and entrepreneurs.
Laxmi India Finance operates 158 branches across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, with the highest number of branches located in Rajasthan. The company has strong financial backing from 47 lenders, including 8 public sector banks, 10 private banks, 7 small finance banks, and 22 NBFCs.
It offers secured MSME loans ranging from ₹0.05 million to ₹2.5 million against residential or commercial property, with a loan tenure of up to 84 months and an LTV ratio of 65%. Its vehicle finance portfolio includes loans for commercial vehicles (up to ₹1.5 million), two-wheelers (up to ₹0.15 million), and tractors (up to ₹0.7 million). The company also provides construction loans up to ₹2.5 million for property construction or renovation, with interest rates ranging from 18% to 28% and a tenure of up to 84 months.
The company reported an Asset Under Management (AUM) of ₹12,770.18 million, with MSME loans contributing 76.34% and vehicle loans 16.12%. Its customer base grew by 48.78% from the previous year, reaching 35,568 customers, including 18,596 active MSME loan customers and 12,423 active vehicle loan customers. Notably, 37.10% of its customers are first-time borrowers.
Promoters of Laxmi India Finance Limited
The promoters of Laxmi India Finance Ltd are Deepak Baid, Prem Devi Baid, Aneesha Baid, Hirak Vinimay Private Limited, Deepak Hitech Motors Private Limited, Prem Dealers Private Limited, and the Vivan Baid Family Trust. They bring extensive experience in the financial services and non-banking finance sector. With a strong emphasis on innovation, customer-centric solutions, and scalable business practices, their leadership has been instrumental in the company’s sustained growth and solid reputation.
Offer For Sale
The Offer for Sale includes promoter and promoter group selling shareholders: Deepak Baid (up to 3,084,952 equity shares), Prem Devi Baid (up to 913,070 shares), Aneesha Baid (up to 1,261,902 shares), Deepak Hitech Motors Private Limited (up to 180,000 shares), and Prem Dealers Private Limited (up to 90,000 shares).
Additionally, promoter group members Preeti Chopra and Rashmi Giria are each offering up to 54,348 shares, respectively. The exact number of shares to be sold will be based on the final offer price.
Lead Managers of Indiqube Spaces IPO
PL Capital Markets Private Limited is acting as the Book Running Lead Manager. MUFG Intime India Private Limited (Formerly Link Intime India Private Limited) is the registrar managing investor applications and allotment.
Objectives of the IPO Offer
The primary objective of the IPO by Laxmi India Finance is the augmentation of its capital base to meet future capital requirements for onward lending. An amount of Rs. 143.00 crore from the net proceeds of the issue will be allocated for this purpose. This capital infusion will enable the company to expand its lending portfolio and support long-term business growth.
Financial Analysis of Laxmi India Finance Ltd
Laxmi India Finance Ltd’s financial performance has demonstrated strong growth over recent years. Revenue increased from ₹130.67 crore in FY23 to ₹175.02 crore in FY24, representing a growth of 34%, and further rose to ₹248.04 crore in FY25, marking a 42% increase over the previous year.
Profit after tax (PAT) showed an even stronger improvement, rising from ₹15.97 crore in FY23 to ₹22.47 crore in FY24, an increase of 41%, and further growing to ₹36.01 crore in FY25, reflecting a 60% growth.
Over the last two years, Laxmi India Finance’s revenue has grown at a CAGR of approximately 37.78%, while profit grew at a CAGR of approximately 50.16%, reflecting improving operational performance and scalability.
Laxmi India Finance Ltd vs Peers
Laxmi India Finance Ltd reported a standalone face value per equity share of Rs. 5.00 for FY2025. The company’s basic and diluted profit per share stood at ₹ 8.78, with a net asset value (NAV) per share of Rs. 61.57, and the P/E ratio is not applicable due to the loss. Indiqube reported a net worth of Rs. 15.66 million.
In comparison, MAS Financial Services Limited reported a face value of ₹10 per share, with a basic and diluted EPS of ₹17.48. The NAV per share stood at ₹142.50, and the P/E ratio was 16.97, reflecting solid profitability and valuation.
SBFC Finance Limited, with a face value of ₹10 per share, recorded a basic EPS of ₹3.21 and a diluted EPS of ₹3.15 for FY2025. The NAV per share was ₹29.40, and the company had a relatively high P/E ratio of 34.38.
Along with it, Ugro Capital Limited reported a face value of ₹10 per share for FY2025, with a basic EPS of ₹15.68 and diluted EPS of ₹14.71. The NAV per share was ₹222.57, and the P/E ratio was 11.65, indicating strong earnings and valuation. Furthermore, Five Star Business Finance Limited, CSL Finance Limited, AKME Fintrade (India) Limited, and Moneyboxx Finance Limited are other listed peers.
Laxmi India Finance Ltd Strengths and Weaknesses
Strengths:
- It focuses on MSME financing
- Access to diversified sources of capital and effective cost of funds
- Comprehensive credit assessment, underwriting, and risk management framework
- Deeper regional penetration in semi-urban and rural areas is supported by a mix of direct and indirect sourcing channels
- It’s the Hub and Branch model that streamlines operations, reduces costs, and increases customer accessibility, driving business growth and market expansion
- Experienced management with good corporate governance practices.
Weaknesses:
- High Capital Requirement: Heavy dependence on external funding, disruptions, or unfavorable terms could strain liquidity and operations.
- MSME Sector Exposure: Business is highly concentrated in MSMEs, making it vulnerable to sector downturns or adverse policy changes.
- Debt Covenant Risk: Subject to strict financing terms; non-compliance may lead to loan recalls or credit facility termination.
- Regulatory Oversight: Regular RBI inspections; non-compliance may negatively impact credibility, operations, and financial health.
- Asset Quality Pressure: High Gross NPA levels or insufficient provisioning can significantly harm profitability and financial stability.
Conclusion
Laxmi India Finance Limited’s IPO offers investors a chance to invest in a fast-growing NBFC focused on MSME, vehicle, and construction loans in underserved markets. Backed by experienced promoters and strong financial performance, the company has shown consistent revenue and profit growth. With expanding operations and increasing demand for secured credit, Laxmi India Finance is well-positioned for future growth. Prospective investors should evaluate the company’s fundamentals, lending risks, and market conditions before investing.
Written by Sridhar J
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