Laxmi India Finance Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, providing detailed insights into the utilization of proceeds raised through its Initial Public Offer (IPO). The report, mandated under Regulation 32(6) of SEBI LODR and prepared by CARE Ratings Limited as the monitoring agency, demonstrates the company's compliance with regulatory requirements for IPO proceeds utilization.

IPO Details and Proceeds Structure

The company's IPO was conducted over a three-day period from July 29, 2025, to July 31, 2025, raising a total of Rs. 254.26 crore. The issue comprised two components: a fresh issue of Rs. 165.17 crore and an offer for sale of Rs. 89.09 crore. As a Non-Banking Financial Company (NBFC), Laxmi India Finance operates in the financial services sector with promoters including Deepak Baid, Prem Devi Baid, Aneesha Baid, and several private limited companies and trusts.

Utilization Progress and Financial Deployment

The monitoring report reveals significant progress in the deployment of IPO proceeds during Q3FY26. The company has utilized Rs. 164.12 crore out of the total fresh issue proceeds of Rs. 165.17 crore, representing approximately 99.36% utilization. The remaining unutilized amount stands at Rs. 1.05 crore, which is currently held in the HDFC Bank public issue account.

Object-wise Fund Deployment

The IPO proceeds were allocated for two primary objectives, both of which have seen substantial progress during the quarter:

Capital Base Augmentation

The largest component, amounting to Rs. 151.59 crore, was designated for augmenting the capital base to meet future capital requirements towards onward lending. This objective has been fully completed, with the entire allocated amount utilized by December 31, 2025. During Q3FY26 alone, Rs. 92.62 crore was deployed for this purpose, with Rs. 90.05 crore transferred from the monitoring account to the company's current account and Rs. 2.57 crore utilized directly from the current account.

Share Issue Expenses

For share issue expenses related to the fresh issue, Rs. 13.58 crore was originally allocated. By the end of Q3FY26, Rs. 12.53 crore had been utilized, leaving Rs. 1.05 crore unutilized. During the quarter, Rs. 3.61 crore was spent on issue-related expenses, including Rs. 3.57 crore for reimbursement of expenses previously incurred from the company account and Rs. 0.04 crore directly from the public issue account.

Compliance and Monitoring Observations

The monitoring agency report confirms full compliance with the disclosed objects of the IPO, with no deviations observed from the expenditures outlined in the offer document. CARE Ratings Limited noted that all utilization has been in accordance with the objectives mentioned in the offer document, and no major deviations were observed compared to earlier monitoring reports.

The report also highlighted that the company's share price had declined by 42% from the issue price as of February 06, 2026, which was noted as relevant information that may materially affect investor decision-making. However, this market performance does not impact the utilization of IPO proceeds or the company's compliance with regulatory requirements.

Timeline and Future Outlook

The capital base augmentation objective was completed ahead of the scheduled timeline of March 31, 2026, demonstrating efficient deployment of funds. The monitoring agency confirmed no delays in the implementation of the stated objectives, with the primary goal of capital augmentation achieved by December 31, 2025.

The remaining Rs. 1.05 crore in unutilized funds represents share issue expenses and is held in the designated HDFC Bank public issue account, maintaining transparency and regulatory compliance for future expense settlements related to the IPO process.

Laxmi India Finance Limited has delivered robust financial performance for Q3FY26, reporting significant growth across key metrics. The company filed its comprehensive investor presentation under reference number LIFL/SLC/2025-26/49 on February 17, 2026, showcasing strong operational and financial achievements.

Financial Performance Highlights

The company demonstrated exceptional growth momentum with net profit surging 63.59% year-on-year to ₹10.06 crores in Q3FY26. Interest income grew by 24.32% to ₹71.99 crores, while net interest income expanded by 38.10% to ₹37.95 crores compared to the same quarter last year.

Operational Growth and Market Expansion

The company's Assets Under Management (AUM) crossed ₹1,450 crores, supported by a robust branch network of 170+ touchpoints across five states. The customer base expanded significantly, serving 40,800+ customers through diversified product offerings including secured MSME loans, vehicle financing, and business loans.

Strategic Focus and Technology Integration

Laxmi India Finance operates with over 110 technology tools including tablet-based Loan Origination System and Synofin LMS/LOS, enabling reduced turnaround times and enhanced customer experience. The company targets a Return on Assets of 3.50% to 3.75% and Return on Equity of 13.50% to 14.00% through operating leverage optimization.

Asset Quality and Risk Management

During the quarter, the company faced some challenges with a distribution associate partner encountering financial stress, resulting in Gross NPA increasing to 2.40% and Net NPA to 1.24%. The company maintains conservative credit practices with collateral-backed lending and prudent provisioning aligned with RBI ECL framework.

Leadership and Governance

The company operates under experienced leadership with the management team averaging over 10 years of NBFC experience. Key positions include Managing Director Mr. Deepak Baid, Chief Financial Officer Mr. Gopal Krishan Sain, and Chief Treasury Officer Mr. Piyush Somani, supported by a strong governance framework.