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 announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing strong operational performance across key financial metrics. The Board of Directors approved these results at their meeting held on February 10, 2026.

Strong Revenue Growth Drives Performance

The company delivered impressive revenue growth during the third quarter of FY26. Interest income, the primary revenue driver, reached ₹7,198.63 lakhs, marking a substantial 37.30% increase from ₹5,790.35 lakhs in the corresponding quarter of the previous year. This growth reflects the company's expanding lending portfolio and improved asset quality.

Profitability Metrics Show Robust Improvement

The company's profitability metrics demonstrated exceptional performance during the quarter. Net profit surged to ₹1,006.22 lakhs in Q3FY26, representing a remarkable 63.60% increase from ₹615.10 lakhs in the same quarter last year. This improvement was driven by higher revenue generation and controlled expense management.

Portfolio Growth and Operational Metrics

The company's Assets Under Management (AUM) grew 21.11% year-on-year to ₹1,451.10 crore as of December 31, 2025, compared to ₹1,198.12 crore in the previous year. The Own Book expanded 23.68% to ₹1,365.02 crore, reflecting steady portfolio scaling and business expansion.

Direct Assignment Portfolio Stress Event

The company disclosed a one-time stress event in its Direct Assignment (DA) loan pool during Q3 FY26. The company had acquired two loan pools under DA transactions during January 2025 and July 2025, aggregating ₹25.12 crore. The DA partner encountered unexpected financial stress, resulting in non-receipt of EMIs. In line with RBI prudential norms, affected accounts remaining overdue beyond 90 days were classified as NPAs as of December 31, 2025.

Strategic Leadership Appointment

The Board approved the appointment of Mr. Vinod Maheshwari as Chief Technology Officer, elevating him from his current position as Vice President – IT. Mr. Maheshwari brings over 15 years of experience in information technology and fintech transformation across NBFC and regulated financial environments.

Key Financial Ratios and Capital Adequacy

The company maintains strong financial health with robust capital adequacy ratios and operational efficiency indicators:

The company operates as a Middle Layer NBFC under the Reserve Bank of India's Master Direction framework and maintains adequate asset cover for its listed non-convertible debentures. Laxmi India Finance successfully completed its Initial Public Offer in August 2025, raising ₹165.17 crores through fresh issue of equity shares.