IPO Details
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IPO Size
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Schedule of Laxmi India Finance Ltd IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About IPO
Laxmi India Finance Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue consists of 10,453,575 Equity Shares of a face value of ₹5, the offer for sale will include 5,638,620 Equity Shares of a face value of ₹5.
Objectives of Laxmi India Finance Ltd
The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:
- The company aims to strengthen its capital base to support future capital requirements for onward lending.
- General corporate purposes.
Laxmi India Finance Ltd Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 10,453,575 Equity Shares |
Offer for Sale | Up to 5,638,620 Equity Shares |
EPS (in ₹) for FY 24 | 6.11 |
Laxmi India Finance Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the Offer |
Non-institutional Investors (NIIs) | Not less than 15% of the Offer |
Retail-individual Investors (RIIs) | Not less than 35% of the Offer |
Industry Outlook
The MSME sector is a key driver of India’s economy, offering high industrialisation potential. MSMEs employ a large workforce, benefit from government support, and have adopted digital solutions, driving business recovery. Aiming for a USD 5 trillion economy by 2025, India expects MSMEs to contribute over 40% of nominal GDP, necessitating strong backing from government, institutions, and banks.
Company Information
Laxmi India Finance Ltd. is a non-deposit-taking NBFC catering to underserved customers in India’s lending market. As of September 30, 2024, it operates 139 branches across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh. With the highest branch network in Rajasthan among peers (CARE Report, FY24), the company offers MSME loans, vehicle loans, construction loans, and other financial solutions. Over 80% of its MSME loans qualify as Priority Sector Lending under RBI guidelines, driving economic growth and financial inclusion.
Laxmi India Finance Ltd Strengths
Focus on MSME financing
Over the last three fiscals (2022–2024) and the period ended June 30, 2024, MSME financing contributed 75.37% to 86.64% of Laxmi India Finance Ltd.'s revenue and represented 73.94% to 80.47% of its overall AUM. The company supports diverse business needs by offering secured MSME loans ranging from ₹0.05 lakhs to ₹2.5 lakhs, backed by residential or commercial property. With an average LTV ratio of 43.60%, the smaller ticket size and asset-backed structure help mitigate default risk. As of June 30, 2024, the company served 15,732 MSME customers.
Broader reach in semi-urban and rural areas through direct and indirect sourcing channels.
Laxmi India Finance Ltd. is expanding its sales network across rural and semi-urban India. Between March 2020 and March 2024, rural credit grew 17.5% YoY to ₹12.52 trillion, while semi-urban credit surged 22.3% to ₹22.57 trillion (Source: CARE Report). With traditional banks underserving mid-sized and lower-rated companies, NBFCs have a significant opportunity to bridge the financing gap through innovative and flexible solutions.
The Hub and Branch model optimises operations, cuts costs, boosts accessibility, and drives growth.
Laxmi India Finance Ltd. operates on a hub-and-branch model to enhance efficiency, reduce costs, and expand its reach. Hub branches serve as central points for loan disbursement, supporting surrounding branches and streamlining operations. Equipped with key decision-makers, including credit managers and operations teams, these hubs improve resource optimisation and customer service. Strategically located in rural and semi-urban areas, the model enables greater accessibility, doorstep services, and deeper penetration into underserved markets.
Risks of Laxmi India Finance Ltd IPO
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Laxmi India Finance Ltd. relies on substantial capital for its operations. Any disruption in funding sources or inability to secure capital on favourable terms could impact liquidity, cash flows, business operations, and financial stability.
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Laxmi India Finance Ltd. primarily serves mid to low-income customers in rural and semi-urban areas, who are more vulnerable to economic downturns. Any defaults from these customers could impact the company's business, cash flows, financial condition, and operational performance.
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Laxmi India Finance Ltd.'s AUM is primarily concentrated in the north-western region of India. Any adverse developments in this region could negatively impact the company's business, cash flows, and operational performance.
All Financial Information about Laxmi India Finance Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Laxmi India Finance Ltd | MAS Financial services | Five Star Business Finance | SBFC Finance | Ugro Capital | CSL Finance | AKME Fintrade (India) Limited | Moneyboxx Finance Ltd |
|---|---|---|---|---|---|---|---|---|
Total income (in ₹ crore) | 175.01 | 1224.57 | 2195.00 | 1019.92 | 1081.68 | 166.60 | 73.50 | 1280.00 |
P/E for FY 24 | [●] | 18.35 | 22.40 | 37.87 | 18.41 | 11.68 | 16.04 | 68.34 |
Return on Net Worth for FY 24 in % | 12.80 | 16.09 | 17.50 | 10.43 | 9.40 | 15.15 | 8.66 | 7.31 |
EPS in ₹ for FY 24 | 6.11 | 15.11 | 28.64 | 2.35 | 13.39 | 28.60 | 5.85 | 3.45 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
LINK INTIME INDIA PRIVATE LIMITED is the registrar of the Laxmi India Finance Ltd IPO. The book running lead manager is:
- PL CAPITAL MARKETS PRIVATE LIMITED
Business Model
Laxmi India Finance Ltd operates a B2B (Business-to-Business) and B2C (Business-to-Consumer) lending model, offering:
- Personal loans, business loans, and working capital financing.
- Digital lending platforms for faster loan approvals.
- Customised credit solutions for MSMEs.
Company Growth Trajectory
Laxmi India Finance Ltd. has steadily expanded its branch network, deepening its presence in existing markets and entering new geographies. The branch count grew from 93 in March 2022 to 135 by June 30, 2024. During this period, AUM surged from ₹531.60 crore to ₹1035.54 crore, achieving a CAGR of 34.49%. MSME AUM grew at a CAGR of 30.73%, while vehicle financing AUM saw a remarkable 78.55% CAGR growth.
Laxmi India Finance Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 175.01 | 130.66 | 98.24 |
Profit Before Tax (in ₹ crore) | 29.63 | 22.01 | 19.50 |
Profit After Tax (in ₹ crore) | 22.46 | 15.97 | 14.65 |
EBITDA (in ₹ crore) | 114.58 | 85.95 | 70.38 |
EPS (in ₹) | 6.11 | 5.02 | 4.99 |
Laxmi India Finance Ltd Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Cash Used in Operating Activities (in ₹ crore) | (223.75) | (196.41) | (18.79) |
Net Cash Used in Investing Activities (in ₹ crore) | (6.79) | 5.14 | (19.69) |
Net Cash Generated from Financing Activities (in ₹ crore) | 177.53 | 212.67 | 33.18 |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 42.70 | 95.84 | 46.88 |
How to Check the Allotment Status of Laxmi India Finance Ltd?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Link Intime Private Ltd. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Laxmi India Finance Ltd
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of Link Intime Private Ltd:
- Visit the website of Link Intime Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for Laxmi India Finance Ltd?
Here are the steps to apply for Laxmi India Finance Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Laxmi India Finance Ltd IPO FAQs
What is the Laxmi India Finance Ltd?
The Laxmi India Finance Ltd IPO is a 100% book-built issue comprising a fresh offer and an offer-for-sale. The fresh issue consists of 10,453,575 Equity Shares, the offer for sale will include 5,638,620 equity shares of a face value of ₹5.
Is Laxmi India Finance Ltd IPO coming?
Yes, Laxmi India Finance Ltd is expected to come up with its IPO soon.
Who is the CEO of Laxmi India Finance Ltd
Deepak Baid is the CEO of Laxmi India Finance Ltd
From where can I read more about the IPO of Laxmi India Finance Ltd
You may read more about Laxmi India Finance Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here.
