Laxmi India Finance IPO Subscription Status
By 11:10 AM on the final day of the IPO subscription, the overall subscription rate had increased to 1.05 times, indicating that the issue was fully subscribed with some additional demand. Among the different investor categories, retail investors showed the greatest interest, oversubscribing their portion by 1.15 times, meaning they applied for 15% more shares than allotted to them.
On the other hand, non-institutional investors (NII) were less enthusiastic, with only 78% of their allocated shares being subscribed, reflecting lower demand in this segment. Similarly, qualified institutional buyers (QIBs), who are typically large investors such as mutual funds and insurance companies, subscribed to just 45% of their allotted shares, showing relatively weak participation from institutional investors in this IPO.
Laxmi India Finance IPO GMP
As of July 31, the grey market premium (GMP) for Laxmi India Finance’s IPO was Rs 4, which means the shares are trading at a slight premium of about 2.5% above the IPO’s upper price band of Rs 158. The GMP indicates that investors in the unofficial grey market expect the shares to list at around Rs 162 on the stock exchange. In other words, the implied listing price based on grey market activity is Rs 162, slightly higher than the IPO price.
Laxmi India Finance IPO issue structure
The IPO, which opened for subscription on July 29 and closes on July 31, is a book-built issue with a price band of Rs 150–158 per share. It comprises a fresh issue of 1.04 crore equity shares worth Rs 165.17 crore and an offer for sale (OFS) of 56.38 lakh shares worth Rs 89.09 crore by existing shareholders.
The company intends to utilise the net proceeds from the fresh issue to strengthen its capital base and support future lending operations.Shares are proposed to be listed on both the BSE and NSE, with a tentative listing date of August 5.Retail investors can bid for a minimum lot size of 94 shares, amounting to Rs 14,852 at the upper end of the price band.
Company fundamentals and growth
Laxmi India Finance has built a strong footprint in rural and semi-urban lending. As of March 2025, the company reported assets under management (AUM) of Rs 1,277 crore, with MSME loans accounting for 76.34% of the portfolio. The loan book spans Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, supported by a branch network of 158 offices and over 35,500 active borrowers, many of them first-time credit customers.
The company’s revenue surged 42% year-on-year to Rs 248 crore in FY25, while profit after tax climbed 60% to Rs 36 crore. Backed by high-yield lending products and a focus on underserved markets, Laxmi India Finance positions itself as a scalable play on India’s growing formal credit ecosystem.
Should you subscribe to Laxmi India Finance IPO?
Bajaj Broking recommends subscribing to the IPO from a long-term investment perspective. “Laxmi India Finance Limited (LIFL) focuses on catering to the financial needs of underserved customers, particularly in the MSME segment. Over the past three fiscal years, the company has shown steady growth in both total income and net profit, reporting Rs 130.67 crore / Rs 15.97 crore in FY23, Rs 175.02 crore / Rs 22.47 crore in FY24, and Rs 248.04 crore / Rs 36.01 crore in FY25,” the brokerage noted.
The company’s average earnings per share (EPS) over the last three years stood at Rs 7.26, with an average return on net worth (RoNW) of 14.01%. Based on FY25 annualised earnings, the IPO is priced at a price-to-earnings (P/E) ratio of 22.93, and 36.74 based on FY24 earnings, according to the brokerage.
PL Capital Markets is managing the IPO, while Link Intime has been appointed as the registrar.
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