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 announced the reaffirmation of its credit rating by Acuité Ratings & Research Limited for Non-Convertible Debentures. The rating agency has maintained the ACUITE A- rating with a positive outlook, reflecting the company's stable credit profile and financial standing.

Credit Rating Details

The rating reaffirmation covers multiple debt instruments with specific allocations across different categories. The comprehensive rating action was completed on February 04, 2026, with verification conducted on the same date.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30, 55 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The formal communication was submitted to both BSE Limited and National Stock Exchange of India Limited on February 05, 2026.

Rating Agency Communication

Acuité Ratings & Research Limited has issued comprehensive rating revalidation letters with specific validity periods. The rating letters contain important compliance requirements and guidelines for the company's ongoing obligations.

Key compliance requirements include:

• Monthly submission of 'No Default Statement' on the first working day
• Immediate notification of NCD issuances within 7 days
• Regular monitoring and surveillance processes

Corporate Structure

The rating covers Laxmi India Finance Limited, formerly known as Laxmi India Finance Private Limited. The company is headquartered at 2, DFL Tower, Gopinath Marg, MI Road, Jaipur 302001, Rajasthan. The rating reaffirmation demonstrates the company's maintained creditworthiness and operational stability in the financial services sector.

The positive outlook indicates Acuité Ratings' expectation of continued stable performance and potential for improvement in the company's credit profile over the rating horizon.