Laxmi India Finance Shares List at 14% Discount to IPO Price

1 min read     Updated on 05 Aug 2025, 10:09 AM
scanxBy ScanX News Team
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Overview

Laxmi India Finance, a Rajasthan-based NBFC, listed on BSE at ₹136.00 and NSE at ₹137.52, 14.00% and 12.96% below its IPO price of ₹158.00 respectively. The IPO raised ₹254.26 crore with 1.86 times overall subscription. The company operates across five states with 158 branches and has shown significant financial growth, with revenues increasing by 90% from FY23 to FY25.

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*this image is generated using AI for illustrative purposes only.

Laxmi India Finance, a Rajasthan-based non-banking financial company (NBFC), made its stock market debut with a disappointing performance, falling short of investor expectations. The company's shares opened significantly below the initial public offering (IPO) price on both major Indian stock exchanges.

Listing Details

The stock commenced trading at ₹136.00 on the Bombay Stock Exchange (BSE) and ₹137.52 on the National Stock Exchange (NSE). These opening prices represented discounts of 14.00% and 12.96% respectively from the IPO price of ₹158.00 per share.

IPO Performance

The initial public offering of Laxmi India Finance raised ₹254.26 crore and saw an overall subscription of 1.86 times. Notably, retail investors showed strong interest, with their portion being subscribed 2.20 times. The IPO consisted of:

  • A fresh issue of shares worth ₹165.17 crore
  • An offer-for-sale (OFS) component of ₹89.09 crore

Market Expectations vs. Reality

The listing price came as a disappointment to many investors, as the grey market had indicated a more positive outlook. Prior to the listing, shares of Laxmi India Finance were trading at a 2% premium in the grey market, creating expectations of a stronger debut.

Company Overview

Laxmi India Finance operates as an NBFC with a focus on providing financial solutions to underserved segments of the market. The company has established a significant presence across five states, operating through 158 branches.

Financial Performance

The company has demonstrated notable financial improvements:

Metric FY23 FY25 Growth
Net Worth (₹ in crore) 152.00 257.00 69.00%
Revenues (₹ in crore) 129.50 245.70 90.00%

This substantial growth in both net worth and revenues showcases the company's expanding operations and market presence.

Despite the positive financial trajectory, the lukewarm market debut highlights the challenges faced by new listings in the current economic environment. Investors and market analysts will be closely watching Laxmi India Finance's performance in the coming weeks to gauge its potential for long-term growth and stability in the competitive NBFC sector.

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Laxmi India Finance Debuts on NSE and BSE with 2% Grey Market Premium

1 min read     Updated on 05 Aug 2025, 08:17 AM
scanxBy ScanX News Team
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Overview

Laxmi India Finance, a Jaipur-based NBFC, listed on NSE and BSE after raising Rs 254.26 crore through its IPO priced at Rs 158 per share. The IPO was oversubscribed 1.86 times, with retail investors' portion oversubscribed 2.20 times. The company operates in four states, focusing on MSME and vehicle loans. It reported Rs 1,277 crore AUM, Rs 248 crore revenue (42% YoY growth), and Rs 36 crore net profit (60% YoY growth). Post-IPO market capitalization stands at Rs 826 crore.

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*this image is generated using AI for illustrative purposes only.

Laxmi India Finance, a Jaipur-based Non-Banking Financial Company (NBFC), made its stock market debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) following a successful Initial Public Offering (IPO). The company's entry into the public markets comes with a modest 2% grey market premium, indicating positive investor sentiment.

IPO Details

The company's IPO raised Rs 254.26 crore, with shares priced at Rs 158 each. The public offering garnered significant interest, achieving an overall oversubscription of 1.86 times. Notably, retail investors showed strong enthusiasm, with their portion being oversubscribed 2.20 times.

Company Profile

Laxmi India Finance, incorporated in 1996, has established itself as a regional NBFC with operations spanning across four states:

  • Rajasthan
  • Gujarat
  • Madhya Pradesh
  • Chhattisgarh

The company's primary focus is on priority-sector lending, with a particular emphasis on Micro, Small, and Medium Enterprises (MSMEs) and vehicle loans.

Financial Highlights

Laxmi India Finance has demonstrated robust financial performance:

Metric Value YoY Growth
Assets Under Management (AUM) Rs 1,277.00 crore -
Revenue Rs 248.00 crore 42%
Net Profit Rs 36.00 crore 60%

MSME lending forms a significant portion of the company's portfolio, accounting for over 76% of its AUM.

Market Valuation

Post-IPO, Laxmi India Finance commands a market capitalization of Rs 826.00 crore. Analysts consider the stock to be fairly valued, taking into account various factors:

Strengths:

  • Efficient hub-and-spoke business model
  • Tech-enabled sourcing capabilities

Considerations:

  • Regional focus
  • High leverage
  • Moderate asset quality indicators

The company's successful IPO and subsequent listing mark a significant milestone for Laxmi India Finance, potentially opening up new avenues for growth and expansion in the competitive NBFC sector.

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