With the IPO market gaining pace this week, Laxmi India Finance has opened its Rs 254 crore public issue for bidding today, July 29. Let’s take a detailed look at what the IPO brings to the table from grey market buzz to the latest subscription numbers.
Laxmi India Finance IPO: Structure and timeline
A mainboard issue , the IPO consists of a fresh issue of shares of Rs 165.17 crore and an offer-for-sale (OFS) segment totalling to Rs 89.09 crore, bringing the total issue size to Rs 254.26 crore.
The price band of the issue has been set between Rs 150 to Rs 158 per share.
A three-day issue, the public bidding window will remain open from July 29 to July 31.
After the bidding process, The IPO allotment is expected to be finalised by August 1. Thereafter, the company’s shares are proposed to be listed on both BSE and NSE, with the tentative listing date set for August 5.
Laxmi India Finance IPO: Day 1 subscription status
On the Day 1 of bidding, the Laxmi India Finance IPO overall subscription rate stood at 0.25 times so far.
Among investor categories, retail investors subscribed 0.44 times, non-institutional investors (NIIs) 0.11 times, while qualified institutional buyers (QIBs) had not yet participated as of now.
Laxmi India Finance IPO: Grey Market trend
As per latest update, the grey market premium (GMP) for Laxmi India Finance is currently around Rs 7 per share. Based on this, the expected listing price is being estimated at Rs 165 per share, indicating a potential listing gain of around 4.43% over the upper price band.
However, GMP is unofficial and may change based on market sentiment.
Laxmi India Finance IPO: Financial Performance
According to its financial disclosures in FY23, the company posted a total income of Rs 130.67 crore and net profit of Rs 15.97 crore. In FY24, income rose to Rs 175.02 crore with a profit of Rs 22.47 crore. For FY25, total income stood at Rs 248.04 crore, with a net profit of Rs 36.01 crore.
Laxmi India Finance has also reported an average Earnings Per Share (EPS) of Rs 7.26 and a Return on Net Worth (RoNW) of 14.01% over the same period.
Bajaj Broking, in its IPO note, commented on the valuation of the issue based on recent earnings. “If we attribute FY25 annualized earnings, the asking price translates to a P/E of 22.93. Based on FY24 earnings, the P/E stands at 36.74,” said Bajaj Broking report on the IPO.
Laxmi India Finance IPO: Lead managers and registrar
The issue is being managed by PL Capital Markets, while MUFG Intime (Link Intime) is the designated registrar.
About the company
Laxmi India Finance operates in the financial services space, primarily focusing on lending to underserved customer segments, including micro, small, and medium enterprises (MSMEs). The company positions itself as a lender targeting specific credit needs in regional markets.