Indian stock market offering for Laxmi India Finance begins today, priced between 150 and 158 rupees per share
Laxmi India Finance IPO Opens to Public Today
Laxmi India Finleasecap Ltd, a Jaipur-based non-banking financial company (NBFC) with over 20 years of experience in lending, is set to go public today. The Initial Public Offering (IPO) will conclude on July 31.
Founded in 1996, Laxmi India Finance has established a strong presence in Tier-2 and Tier-3 cities, with 80% of its assets under management (AUM) in Rajasthan, 13% in Madhya Pradesh, and 7% in Gujarat. The company offers a diverse product portfolio, including MSME loans, vehicle loans, construction loans, and other lending solutions.
Before the IPO, Laxmi India Finance had developed a diversified loan portfolio primarily comprising MSME loans (making up about 76% of AUM), secured against residential property, vehicle loans (mostly commercial vehicles, about 16% of AUM), two-wheeler and personal loans, and affordable construction finance.
The company's business model emphasizes financial inclusion, catering to the underbanked segments, and offering credit products suited to these customers. This focus on underserved markets has driven robust growth and operational discipline for Laxmi India Finance.
In FY25, Laxmi India Finance showed strong financial performance, with a net profit increase of 58.8% to ₹35.91 crore, total revenue rising 41.7% to ₹248.04 crore, and borrowings increasing by 48.3% to ₹1,137.1 crore. Its AUM stood at around ₹1,277 crore as of mid-2025.
The IPO consists of a fresh issue of 1.84 crore equity shares and an offer-for-sale of 56.38 lakh shares by the promoters, totaling an IPO size of ₹254.26 crore. Proceeds from the fresh issue will be used to strengthen Laxmi India Finance's capital base for future capital requirements and general corporate purposes.
PL Capital Markets is the sole book-running lead manager to the public issue of Laxmi India Finance. The anchor portion of the IPO was participated in by 11 funds, including Saint Capital Fund, BNP Paribas Financial Markets -- ODI, Compact Structure Fund, Cognizant Capital Dynamic Opportunities Fund, India Max Investment Fund, Holani Venture Capital Fund-I, and Rajasthan Global Securities.
Laxmi India Finance raised over ₹75 crore from anchor investors on Monday. The price band for the IPO is ₹150-158 per share.
Operational strengths include a robust credit and risk management framework focused on borrower credit history and cash flows, a hub-and-branch model enhancing reach and efficiency in underserved areas, and deep penetration in financial inclusion. However, the company relies heavily on external funding and is exposed to sector-specific risks, especially from MSME lending.
As of March 2025, Laxmi India Finance's operational network spans across 158 branches in rural, semi-urban, and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. The increase in Laxmi India Finance's AUM is primarily due to an increase in the volume of its loans and a strengthened branch network. The CAGR of Laxmi India Finance's AUM for the period between March 2023 and March 2025 is over 36%.
In summary, before its IPO scheduled for late July 2025, Laxmi India Finance had grown into a fast-growing and profitable NBFC with a strong regional presence rooted in Rajasthan, a diversified loan portfolio catering mainly to MSMEs and underbanked customers, and a demonstrated track record of financial inclusion and risk management.
This article was published on July 29, 2025.
References:
- Laxmi India Finleasecap Ltd IPO
- Laxmi India Finleasecap IPO: All you need to know
- Laxmi India Finleasecap Ltd IPO: A deep dive
- Laxmi India Finleasecap Ltd IPO: Understanding the business model
- The IPO of Laxmi India Finleasecap Ltd, a Jaipur-based NBFC, offers an opportunity for investment in the finance sector, as the public offering opens today and concludes on July 31.
- The company's business model emphasizes financial inclusion, catering to underserved markets, and offers diverse loan products, such as MSME loans, vehicle loans, and construction loans.
- Proceeds from the IPO will be used to strengthen Laxmi India Finance's capital base for future business requirements and general corporate purposes.
- As investors consider the subscription for Laxmi India Finleasecap Ltd's IPO, they should evaluate factors like the company's operational strengths, growth trajectory, and the risks associated with its heavy reliance on external funding and exposure to MSME lending.
