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Laxmi India Finance IPO
Laxmi India Finance Ltd
₹14,100 /94 sharesMinimum Investment
Laxmi India Finance IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| BSE | ₹158.00 | ₹137.52 | -₹20.48 (12.96%) |
Laxmi India Finance IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 29 Jul ‘25 - 31 Jul ‘25 | ₹14,100 | 94 | ₹150 - ₹158 |
| Issue Size | IPO Doc |
|---|---|
| 254.26Cr | RHP PDF |
Subscription rate
As of 31 Jul'25, 04:00 PM
| Qualified Institutional Buyers | 1.11x |
| Non-Institutional Investor | 1.49x |
| Retail Individual Investor | 2.00x |
| Employees | 1.43x |
| Total | 1.63x |
About Laxmi India Finance
Founded in
1996
Managing director
Mr Deepak Baid
Parent organisation
Laxmi India Finance Ltd
Laxmi India Finance Ltd IPO
https://www.youtube.com/watch?v=F3vE9fRPazg
Strengths & Financials of Laxmi India Finance
Strengths
Risks
The company claims to maintain a broad funding base with 47 lenders, including public sector banks, private banks, small finance banks (SFBs), and NBFCs as of FY25. It has reduced its average cost of borrowing from 12.24 percent in FY23 to 12.02 percent in FY25 due to improved credit ratings and lender relationships. Furthermore, its capital adequacy ratio (CAR) of 20.80 percent is well above the Reserve Bank of India (RBI) requirement of 15 percent.
Laxmi India Finance claims to have a robust risk management framework with stringent credit quality checks and multi-level loan assessments. As of FY25, 98.81 percent of its loan portfolio was secured, with secured MSME loans maintaining an average loan-to-value (LTV) ratio of 43.79 percent and secured vehicle loans at 73.21 percent.
The company claims to utilise its loan origination software (LOS) for real-time data integration, automated background checks, and faster credit approval. It also claims to conduct on-site inspections, collateral verification, and employs a co-borrower and guarantor model to strengthen loan recovery.
With a gross non-performing asset (GNPA) ratio of 1.07 percent and a net non-performing asset (NNPA) ratio of 0.48 percent in FY25, the company claims to perform better than most peers in asset quality.
The company claims to have built a strong presence in underserved regions with 158 branches and a multi-channel sourcing approach, including direct sales teams, direct sales associates (DSAs), and digital platforms. As of FY25, its sales workforce of 678 employees focused largely on MSME and vehicle financing.
By leveraging both offline teams and digital outreach through social media, bulk SMS, and IVR systems, the company claims to be able to cater to rural and semi-urban customers, a segment often overlooked by traditional scheduled commercial banks (SCBs).
Laxmi India Finance claims to operate through a hub and branch model designed to streamline operations, reduce costs, and improve customer accessibility. Each hub branch functions as a central unit for disbursement and oversight, supporting surrounding branches with credit checks and loan approvals. These hubs are staffed with credit managers, business development teams, and collections personnel, enabling faster decision-making and operational efficiency. By strategically placing branches in rural and semi-urban areas, the company claims to be able to expand its presence in underserved markets while maintaining low operational costs and scalable growth potential.
The company has received a credit rating of ‘A- Stable’ by Acuite Ratings for its bank loan facilities and non-convertible debentures.
The company has reported a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 129.53 crore in FY23 to Rs 173.14 crore in FY24 and Rs 245.71 crore in FY25. PAT increased from Rs 15.97 crore in FY23 to Rs 22.47 crore in FY24 and Rs 36.00 crore in FY25.
As an NBFC-middle layer, Laxmi India Finance is heavily regulated by the RBI. Any adverse changes or evolving interpretations of laws, rules, or regulations applicable to NBFCs could increase compliance costs, limit operational flexibility, or even result in penalties or suspension of licenses. Furthermore, being a debt-listed entity on the BSE, the company is also subject to continuous disclosure and compliance requirements under SEBI listing regulations. Any failure to adhere to these obligations could negatively impact its reputation, business, and financial condition.
The top 10 lenders accounted for 53.94 percent of the company’s total borrowings in FY25, 62.27 percent in FY24, and 52.30 percent in FY23. Any adverse change in the terms, availability, or cost of funds from these lenders can impact the company’s liquidity and ability to fund future growth.
MSME financing accounted for 80.96 percent, 75.37 percent and 83.64 percent of the company’s total revenue in FY25, FY24, and FY23, respectively. Furthermore, the MSME loan portfolio accounted for Rs 974.86 crore (76.84 percent) of the company’s overall assets under management (AUM) in FY25, Rs 710.84 crore (73.94 percent) in FY24, and Rs 523.02 crore (76.16 percent) in FY23. Any adverse developments in the MSME sector or changes in government policies affecting this segment can lead to increased defaults and reduced loan demand, impacting the company’s cash flows and profitability.
The company reported negative cash flow from operating activities amounting to Rs 311.26 crore in FY25, Rs 223.76 crore in FY24, and Rs 169.41 crore in FY23. This was largely attributable to an increase in loans disbursed, representing an expansion in the company’s loan portfolio. Additionally, negative cash flow from investing activities amounted to Rs 18.39 crore in FY25 and Rs 6.79 crore in FY24. Furthermore, the company reported a net decrease in cash and cash equivalents amounting to Rs 53.01 crore in FY24. As an NBFC that lends money to the general public, it is imperative for it to keep a healthy balance between outflow and inflow so that stress of any sort is avoided.
The company primarily serves mid to low-income customers in rural and semi-urban areas. As of FY25, first-time borrowers constituted 37.10 percent of the company’s aggregate customer base. Any economic downturn, income instability, or lack of liquidity among these customers could lead to higher defaults, adversely impacting the company’s cash flows, financial condition, and overall business performance.
A significant portion of the company’s AUM is concentrated in Rajasthan. It accounted for Rs 1,022.42 crore (80.06 percent) of the company’s total AUM in FY25, Rs 787.29 crore (81.89 percent) in FY24, and Rs 608.40 crore (88.59 percent) in FY23. Any adverse political, social, or economic developments in this region could significantly disrupt business operations, reduce loan repayments, and adversely affect the company’s results of operations.
The company’s borrowing profile is heavily dependent on floating-rate loans, which exposes it to significant interest rate risk. They accounted for Rs 912.20 crore (80.22 percent) of the company’s total borrowings in FY25, Rs 630.36 crore (82.22 percent) in FY24, and Rs 434.24 crore (70.55 percent) in FY23. Any rise in interest rates could substantially increase funding costs, compress net interest margins, and adversely impact the company’s profitability and cash flows.
The company’s vehicle loan portfolio is heavily concentrated in used vehicle financing. It accounted for 93.92 percent of the company’s vehicle loan AUM in FY25, 96.11 percent in FY24, and 97.37 percent in FY23. Any adverse developments in the used vehicle segment, such as regulatory changes, a decline in demand, or valuation challenges, could significantly reduce loan disbursements and recovery values.
The company and its promoters are involved in certain ongoing legal proceedings, including criminal and tax-related cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of May 31, 2025, the company had outstanding financial indebtedness amounting to Rs 1,114.22 crore. Any failure to service or repay these loans could harm the company’s operations and financial position.
Laxmi India Finance Financials
*All values are in Rs. Cr
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Application Details of Laxmi India Finance IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹150 - 158 | ₹2 Lakh |
| Employee | ₹150 - 158 | ₹2 Lakh |
| High Networth Individual | ₹150 - 158 | ₹2 - 5 Lakh |
For Laxmi India Finance IPO, eligible investors can apply as Regular & Employee.