Laxmi India Finance IPO opens for subscription on July 29, 2025, and closes on July 31, 2025. Incorporated in 1996, Laxmi India Finance Limited operates as a Non-Banking Financial Company (NBFC), offering a variety of secured lending products tailored to small businesses and individual borrowers. The company focuses on sectors such as MSME, vehicle finance, and construction loans, with over 80% of its MSME loans qualifying under Priority Sector Lending.
This blog will further explore Laxmi India Finance IPO details, including issue size, price band, business model insights, and financial performance.
Laxmi India Finance IPO Date
The key pointers for the Laxmi India Finance IPO dates are:
- Bidding Opening Date: July 29, 2025
- Bidding Closing Date: July 31, 2025
- Allotment Date: August 1, 2025
- Initiation of Refunds (in case of less or no allotment): August 4, 2025
- Shares Credited to Your Demat Account: August 4, 2025
- IPO Listing Date: August 5, 2025
- Listing on Exchange: BSE and NSE
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Laxmi India Finance: IPO Issue Size
Laxmi India Finance IPO valuation, as denoted by the market capitalization, stood at ₹825.83 crores. Here are the important Laxmi India Finance IPO details:
- Laxmi India Finance IPO Price Band: ₹150 to ₹158 per share
- Lot Size: 94 Shares
- Issue Size and Amount: 1.60 crore shares (aggregating up to ₹254.26 Cr)
- Fresh Issue Size and Amount: 1.04 crore shares (aggregating up to ₹165.17 Cr)
- Offer for Sale and Amount: 56 lakh shares (aggregating up to ₹89.09 Cr)
Laxmi India Finance IPO Proceeds Usage
Laxmi India Finance IPO proceeds will be used for the following purposes:
- Strengthening capital base for future lending: The company plans to use fresh issue proceeds to enhance its capital base, which will support future funding needs for onward lending activities.
- OFS Component: The offer for sale component will directly go to the selling shareholders. They are Deepak Baid, Prem Devi Baid, Deepak Hitech Motors Private Limited, Preeti Chopra, and others.
Laxmi India Finance IPO Reservations
Laxmi India Finance IPO reservations to different investors are:
- For QIBs: Not more than 50% of the Net Offer
- For NIIs: Not less than 15% of the Net Offer
- For Retail Investors: Not less than 35% of the Net Offer
Laxmi India Finance IPO Lot Size
Laxmi India Finance IPO lot size is 94 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 94 | ₹14,852 |
| S-HNI (Min) | 14 | 1,316 | ₹2,07,928 |
| B-HNI (Min) | 68 | 6,392 | ₹10,09,936 |
Laxmi India Finance IPO Details: Promoter Holding
Deepak Baid, Prem Devi Baid, Aneesha Baid, Hirak Vinimay Private Limited, Deepak Hitech Motors Private Limited, Prem Dealers Private Limited, and Vivan Baid Family Trust are the promoters of the company.
Laxmi India Finance IPO: Company Overview
Laxmi India Finance Limited, established in 1996, is a non-deposit taking Non-Banking Financial Company (NBFC) that offers various types of secured loans to individuals and small businesses. The company mainly focuses on providing financial support through MSME loans, vehicle loans, and construction loans, helping entrepreneurs and local businesses grow. More than 80% of its MSME loans fall under the government’s Priority Sector Lending category, which promotes lending to essential sectors of the economy.
Under MSME finance, the company gives secured loans to small businesses by taking residential or commercial property as security. The loan amount ranges from ₹50,000 to ₹25 lakhs, with a loan-to-value (LTV) ratio of 65%, and a maximum tenure of 84 months. In vehicle finance, loans are offered for both personal and business use. This includes loans for commercial vehicles up to ₹15 lakhs, two-wheelers up to ₹1.5 lakhs, and tractors up to ₹7 lakhs.
For individuals planning to construct or renovate their home or commercial property, the company offers construction loans of up to ₹25 lakhs, with interest rates between 18% and 28%, and flexible repayment periods going up to 84 months.
As of March 31, 2025, Laxmi India Finance had assets under management (AUM) worth ₹1,277.02 crores. Out of this, MSME loans accounted for over 76%, and vehicle loans contributed around 16%. The company served a total of 35,568 customers, including 18,596 active MSME borrowers and 12,423 active vehicle loan customers, marking a 48.78% increase from the previous year’s total of 23,906 customers. Interestingly, around 37.10% of the company’s borrowers were first-time loan applicants.
The company expanded its branch network to 158 branches across four states—Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, with Rajasthan having the most branches. The company raises money from 47 different lenders, including 8 public sector banks, 10 private banks, 7 small finance banks, and 22 NBFCs.
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Laxmi India Finance IPO: Financial Performance
Laxmi India Finance Limited key financials for different periods are as follows:
| Particulars (in ₹ Cr) | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Net Interest Income | 116.69 | 81.37 | 43.41% |
| Profit After Tax | 35.91 | 22.62 | 58.75% |
| AUM (Assets Under Management) | 1,277.02 | 961.37 | 32.83% |
| Disbursements | 718.53 | 525.43 | 36.75% |
| GNPA (%) | 1.07% | 0.73% | 0.34% |
| Net NPA Ratio (%) | 0.48% | 0.33% | 0.15% |
| CRAR (%) | 20.80% | 21.81% | -1.01% |
| RoTA (%) | 3.00% | 2.57% | 0.43% |
- Laxmi India Finance’s net interest income reached ₹116.69 crores, with a 43.41% YoY growth indicating improved core lending profitability.
- Profit After Tax surged to ₹35.91 crores, reflecting a 58.75% increase driven by enhanced operational efficiency and profitability.
- AUM grew to ₹1,277.02 crores, showing robust business expansion and portfolio growth.
- Disbursements increased to ₹718.53 crores, up 36.75%, highlighting stronger credit demand and higher lending activity.
- GNPA increased slightly to 1.07%, suggesting an increase in asset quality stress.
- Net NPA Ratio inched up to 0.48%, rising 0.15 percentage points but remaining at a controlled level.
- CRAR dipped to 20.80%, down by 1.01 percentage points, highlighting its capital adequacy.
- Return on Average Total Assets (RoTA) improved to 3%, signaling better utilization of the asset base to generate profits.
Laxmi India Finance IPO Risk Factors
Laxmi India Finance IPO GMP is ₹18 as of July 25, 2025 (at 15:01). It is expected to list at a 11.39% gain at a price of ₹176. However, GMP is not a safe or assured criterion to bid for an IPO.
Laxmi India Finance Limited is exposed to various risk factors that can eventually affect its business and investors’ perception:
- The company depends heavily on securing substantial capital, and any disruption in funding or unfavorable borrowing terms could impact liquidity, operations, and financial stability.
- Since the focus is on micro, small, and medium enterprises (MSMEs), changes in this sector or related government policies may pose challenges to growth and cash flow.
- Serving predominantly mid to low-income customers in rural and semi-urban areas means that economic downturns affecting these groups could lead to increased defaults and financial strain.
- Listing of Non-Convertible Debentures (NCDs) on the BSE requires adherence to SEBI’s reporting and compliance rules, with penalties possible for any lapses or delays.
- Regular inspections by the Reserve Bank of India (RBI) demand strict regulatory compliance, and failure to meet these requirements could impact operations and financial performance.
- With a large share of AUM concentrated in the north-western region, any regional economic or political disruptions could significantly influence business outcomes.
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Frequently Asked Questions – FAQs
1. What are the key dates for the Laxmi India Finance IPO?
The IPO opens for subscription on July 29, 2025, and closes on July 31, 2025. The allotment is expected to be finalised on August 1, 2025, with listing likely on August 5, 2025, on BSE and NSE.
2. What is the price band and lot size for the IPO?
The price band for the Laxmi India Finance IPO is ₹150 to ₹158 per share. The lot size is 94 shares, and retail investors can apply for a minimum of 1 lot (₹14,852 at the upper price band).
3. How will the IPO proceeds be utilised?
The company will use the IPO proceeds to strengthen its capital base. This will support future lending needs and expand its loan portfolio.
4. What does Laxmi India Finance Ltd. do?
Laxmi India Finance is a Non-Banking Financial Company (NBFC) that offers secured loans including MSME finance, vehicle loans, and construction loans. It serves small businesses and individual borrowers, mainly across rural and semi-urban areas.
References:
https://www.sebi.gov.in/filings/public-issues/jul-2025/laxmi-india-finance-limited-rhp_95526.html
https://www.investorgain.com/gmp/laxmi-india-finance-ipo-gmp/1341/
Author: All Content is verified by SMC Global Securities.
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