Laxmi India Finance IPO opens for subscription. Check GMP, review, and more
ADVERTISEMENT The IPO opened to a slow response, with overall subscription hovering close to just 1% in the initial hours of bidding. However, retail investors showed relatively better interest, with the retail portion receiving 14–15% subscription for the 55.75 lakh shares reserved for them.
"The Non-Institutional Investor (NII) segment recorded only 0.03% subscription so far, with 77,926 shares bid against an allocation of 23.89 lakh shares. Meanwhile, Qualified Institutional Buyers (QIBs) have not submitted any bids yet for their 31.86 lakh share quota. The employee reserved portion saw 9% subscription for the 1.60 lakh shares allotted.
The IPO's price band is set between Rs 150 and Rs 158 per share, and the issue aims to raise up to Rs 254 crore through a book-built issue. The IPO opened for subscription today, July 29, and will remain open until July 31, 2025.The grey market premium (GMP) for the IPO is around Rs 9, suggesting a potential listing price of approximately Rs 167, which reflects an implied premium of about 5.7% over the upper end of the price band.
ADVERTISEMENT The IPO comprises a fresh issue of 1.04 crore shares worth Rs 165.17 crore and an offer for sale of 56.38 lakh shares worth Rs 89.09 crore by existing shareholders. Retail investors can apply for a minimum lot size of 94 shares, which amounts to Rs 14,852 on upper price band.Shares of Laxmi India Finance are proposed to be listed on both the BSE and NSE, with a tentative listing date of August 5.
ADVERTISEMENT
The company intends to use the proceeds from the fresh issue primarily to augment its capital base and meet future lending requirements.
ADVERTISEMENT As of March 2025, Laxmi India Finance had assets under management (AUM) of Rs 1,277 crore, with MSME loans comprising 76.34% of its total portfolio. Its loan book is diversified across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, with a network of 158 branches and over 35,500 active customers, including a significant share of first-time borrowers.Laxmi India has shown strong growth in its financials. Revenue increased 42% year-on-year to Rs 248 crore in FY25, while profit after tax rose 60% to Rs 36 crore.Backed by a mix of high-yield lending products, deep regional reach, and growing demand for formal credit among underserved segments, Laxmi India Finance offers investors a compelling entry into the expanding MSME lending space. The IPO is being managed by PL Capital Markets, with Link Intime as the registrar.
ADVERTISEMENT "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 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 the annualized earnings for FY25, the IPO is priced at a price-to-earnings (P/E) ratio of 22.93, while the P/E based on FY24 earnings is 36.74. " according to a Bajaj Broking report. The broking firm recommends subscribing to the IPO for long-term investment.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
43 minutes ago
- Deccan Herald
Hyundai Q1 net profit dips 8 per cent at Rs 1,369 cr
Total income declined to Rs 16,628 crore for the June quarter as against Rs 17,568 crore in the year-ago period, Hyundai Motor India Ltd said in a regulatory filing.
Time of India
43 minutes ago
- Time of India
KPIT Technologies reports ₹1,480 crore revenue in Q1 FY26, EBITDA margin stable at 21%
KPIT Technologies reported financial results for the first quarter of the financial year 2025–26 (Q1 FY26), with consolidated revenue of ₹1,480 crore ($178 million), reflecting a year-on-year growth of 12.8 per cent. EBITDA margin remained at 21.0 per cent. Total contract value (TCV) of new engagements during the quarter stood at $241 million, indicating continued client demand for KPIT's mobility solutions and technology integration capabilities. Focus on AI, platforms, and client-led growth Kishor Patil, Co-founder, CEO and MD, KPIT Technologies, said, 'The performance of Q1 FY26 is in line with our expectations and despite macro challenges we have maintained our EBITDA margins. The mobility industry is going through a lot of fluctuations with geopolitical and tariff-led uncertainties. We believe these will settle down in a quarter.' He added, 'We are continuously reimagining ourselves to enhance our positioning as a global leader, driven by investments in building Solutions, backed by our Platforms, Tools and Accelerators (PTAs). Apart from our current clients and markets, we see opportunities in working on India-for-India solutions to help our clients establish India-specific products. We are confident of growth in H2, led by T25 clients.' Sachin Tikekar, Co-founder and Joint MD, said, 'KPIT is consistently progressing on creating mobility-specific AI 'Specialised Learning Models'. Our mobility-infused AI solutions are creating value for strategic clients. These include validation suites, middleware, benchmarking and cost-reduction tools, which are already being deployed. The KPIT AI framework is bringing productivity benefits and supports our margin stability and resource efficiency.' Strategic collaboration with JSW Motors The company also announced a strategic partnership with JSW Motors to support the development of India-focused new energy mobility solutions. This collaboration is part of KPIT's ongoing effort to expand its role in the domestic automotive ecosystem and support cleaner transportation technologies.
Mint
43 minutes ago
- Mint
Indian stocks settle with marginal gains; uncertainty looms over US trade deadline
New Delhi [India], July 30 (ANI): Domestic equity benchmarks settled marginally higher Wednesday, possibly due to some fresh buying, but analysts are of the view that uncertainty around the India-US trade front will continue to remain key headwinds. Sensex closed at 81,481.86 points, up 143.91 points or 0.18 per cent, while Nifty closed at 24,855.05 points, up 33.95 points or 0.14 per cent. Both indices started the session largely flat. "The major drag on the market continues to be the negative news on the India-US trade front. President Trump's comment that 'India may have to pay 20-25% tariff' is very negative from the short-term market perspective," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. Also, the US Fed monetary policy decision today is unlikely to impact the market, Vijayakumar added. "Weakness in the market due to these headwinds can be used by long-term investors to slowly accumulate fairly valued high-quality stocks," he added. Among sectors, selective buying was seen in capital goods stocks, whereas the Realty and Media indices continued to experience profit booking at higher levels, Shrikant Chouhan, Head Equity Research, Kotak Securities, said. The benchmark indices faced substantial selling pressure at higher levels over the past few sessions, with analysts indicating that the India-US new interim deal is unlikely to be finalised before the August 1 deadline. On Sunday, the US administration indicated that the August 1 deadline wouldn't be extended further. At a broader level, however, India's strong domestic fundamentals, a responsive RBI, and good monsoon conditions have been supporting the financial markets. A comfortable inflation number in India is another positive. In 2025 so far, Sensex rose around 4 per cent. In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. (ANI)
