The Laxmi India Finance IPO opened for subscription on July 29, 2025, and will close on July 31, 2025. The IPO aims to raise ₹254.26 crore through a combination of a fresh issue of 1.05 crore shares aggregating to ₹165.17 crore and an offer for sale of 0.56 crore shares aggregating to ₹89.09 crore. The IPO price band is set at ₹150 to ₹158 per share, with a face value of ₹5. The shares are proposed to be listed on both the BSE and NSE on August 5, 2025. The allotment for the IPO is expected to be finalized on August 1, 2025.

Subscription Status

On Day 2, the IPO has been subscribed 0.44 times. On the first day, the IPO was subscribed 0.37 times. Retail investors showed relatively better interest, with the retail portion receiving 0.61 times subscription. The Non-Institutional Investor (NII) segment has seen a subscription of 0.19 times, while Qualified Institutional Buyers (QIBs) have submitted bids covering 0.10 times of their quota. The employee reserved category has experienced a 0.41 times subscription.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Laxmi India Finance IPO is ₹9 as of July 29, 2025. This indicates that the estimated listing price could be ₹167 per share. Based on the GMP, the estimated listing gain in this IPO could be 5.70%. However, GMP details are subject to change based on market conditions and fluctuations.

Should you subscribe?

• Financial Performance: Laxmi India Finance has demonstrated steady financial growth. The company's revenue soared by 42% from ₹175.02 crores in March 2024 to ₹248.04 crores in March 2025. Additionally, the company's PAT increased by 60% from ₹22.27 crores to ₹36.01 crores.
• Business Overview: Laxmi India Finance Limited, established in 1996, is a Non-Banking Financial Company (NBFC) that provides MSME loans, vehicle loans, and construction loans to small businesses and entrepreneurs. As of June 30, 2024, the company has 26,065 customers, including 15,732 active MSME and 6,146 active vehicle loan customers. The company operates 158 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh.
• Strengths: The company has a dominant presence in semi-urban and rural loan markets, particularly in Rajasthan. It has a secured loan portfolio with low NPA ratios.
• Concerns: According to its recent financial data, the IPO appears aggressively priced.

Recommendation

Considering the company's financial performance, market position, and the current GMP, analysts have given mixed recommendations. Some suggest that only well-informed or cash-surplus investors may consider parking moderate funds for the long term. One brokerage firm, Canara Bank Securities, has given a "subscribe for long-term" rating to the IPO, noting the company's robust financial performance over the past three years. Capital Market (CapitalMarket.com) recommends to avoid, but active risk seekers can try for the IPO.

Key Details for Investors

• IPO Size: ₹254.26 crore.
• Price Band: ₹150 to ₹158 per share.
• Lot Size: 94 shares.
• Minimum Investment (Retail): ₹14,852.
• Listing Date: August 5, 2025.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making any investment decisions.