| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 150 to ₹ 158 | 94 | 29th Jul, 2025 – 31st Jul, 2025 | ₹254.26 Cr |
Laxmi India Finance Ltd.
Laxmi India Finance Limited (LIFL) is a non-deposit-taking, non-banking financial company (NBFC) that serves the financial needs of underserved customers in India’s lending market. As of March 31, 2025, its operational network spanned 158 branches across rural, semi-urban, and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. Laxmi Finance has the broadest reach in Rajasthan, being the company with the highest number of branches among its peers for the full year ended 31 March 2025. The company’s product portfolio includes MSME loans, vehicle loans, construction loans, and other lending products that cater to the diverse financial needs of its customers. As of March 31, 2025, LIFL’s assets under management (AUM) stood at Rs. 12,770 million, with its MSME and vehicle loan verticals contributing 76.3% and 16.1%, respectively. As of March 31, 2025, LIFL’s customer base comprised 35,568 customers, including 18,596 active MSME customers and 12,423 active vehicle loan customers, representing a 48.8% increase from 23,906 customers as of March 31, 2024. The company has systematically grown its branch network from 119 as of March 31, 2023, to 135 as of March 31, 2024, and to 158 as of March 31, 2025. Its MSME AUM grew at a CAGR of 36.5% between FY23 and FY25, while vehicle financing AUM grew at a CAGR of 47.2%. LIFL has a diversified source of funding, including access from 47 lenders, raising debt through various instruments such as term loans from public sector banks and private banks, non-convertible debentures (NCDs), working capital demand loans, and overdrafts against fixed deposits. As of March 31, 2025, its customer base included 37.1% of first-time borrowers. Its average cost of borrowing has decreased from 12.2% as of March 31, 2023, to 12.0% as of March 31, 2025, driven by credit rating upgrades and expanded public sector undertaking (PSU) partnerships.
Objective of the Laxmi India Finance Ltd IPO
Out of the total issue of Rs. 2,543 million, the company proposes to utilise net proceeds from fresh issue (Rs. 1,652 million) to augment its capital base and meet future business requirements of the company for onward lending.
Out of the total issue size, Rs. 891 million comprises Offer For Sale (OFS)
Rationale To Laxmi India Finance Ltd IPO
Scalable MSME lending model with deep rural penetration and cost-efficient distribution
LIFL has established a strong presence in India’s underpenetrated MSME lending space, with MSME loans contributing 76.3% of AUM and over 80% of total revenues in FY25. Focused primarily on micro and small enterprises with average loan sizes between Rs. 0.05–2.5 million, these loans are secured by residential or commercial property and maintained at a conservative average LTV of 43.8%, ensuring robust asset quality. The company leverages a scalable and cost-efficient multi-channel distribution model comprising a direct on-ground sales team (77.1% of disbursements in FY25), a growing network of 194 DSAs (Direct Sales Associates) (22.0%), and emerging digital channels. Its Hub-and-Branch framework, supported by 1,470 employees (including 614 focused on MSMEs), enables deep penetration into semi-urban and rural markets while maintaining high operational efficiency. Backed by formalization tailwinds (such as Udyam), digital outreach, and the sector’s projected 20–22% AUM CAGR through FY27 (as per CARE Ratings), Laxmi India is well-positioned to scale sustainably while maintaining credit discipline in a high-growth borrower segment.
Robust credit and risk management driving prudent growth and asset quality
Laxmi India Finance has institutionalized a comprehensive, technology-enabled credit assessment and risk management framework that underpins its growth in underserved borrower segments. Operating in rural and semi-urban markets with borrowers often lacking formal income documentation, the company employs multi-level loan evaluations, combining credit bureau scores, digital underwriting, in-person assessments, and cash flow profiling to determine repayment ability. As of March 2025, 98.8% of its loan portfolio was secured, with MSME loans backed by assets at a conservative average LTV of 43.8%. The company also demonstrates credit inclusivity without compromising on quality, with 49.3% of customers having a CIBIL score above 650 and 37.1% being new to formal lending, reflecting a disciplined onboarding process for first-time borrowers. Operationally, Laxmi integrates real-time analytics through its digitised Loan Origination System (LOS), which enables automated background checks, geo-tagged collateral verification, and deviation tracking, thereby significantly reducing human error and turnaround time. To mitigate behavioural and counterparty risks, loans often include co-borrowers (such as spouses or parents), a mandated female co-borrower, and external guarantors. These thoughtful practices not only improve repayment behaviour but also broaden risk-sharing within the borrower ecosystem. With a GNPA of 1.1% and NNPA of 0.5%, it leads the peer group (except CSL Finance), demonstrating strong risk management and a healthy loan book (Source: CARE Report).
Valuation of Laxmi India Finance Ltd IPO
Laxmi India Finance Limited (LIFL) is a non-deposit taking NBFC, specialising in secured lending to micro and small enterprises (MSMEs) across semi-urban and rural India. With 76.3% of its AUM and over 80% of FY25 revenue derived from MSME loans, the company has built a focused, asset-backed lending model targeting financially underserved but high-potential borrower segments. NBFCs focused on MSME lending are expected to grow their AUM at a CAGR of ~20–22% through FY27, driven by increasing formalisation, digitisation, and structural shifts in credit demand beyond metros. Laxmi India, with its deep-rooted presence, secured lending model, and digitised underwriting, is well placed to capitalise on this multi-year growth opportunity while maintaining prudent risk controls. The company has delivered strong financial performance, with revenue growing at a CAGR of 37.7% and profit after tax expanding at 50.1% between FY23 and FY25. Its AUM nearly doubled over the period, rising from Rs. 6,868 million to Rs. 12,770 million. Net Interest Margin improved to 9.7% in FY25 from 9.3% in FY23. Return ratios also strengthened, with RoAE increasing to 15.7% and RoATA rising to 3.0% in FY25, up from 12.6% and 2.5% in FY24, respectively. Potential concerns include a decline in CRAR (from 23.1% in FY23 to 20.8% in FY25), alongside a rise in GNPA by 49 bps to 1.07% and NNPA by 16 bps to 0.48%, indicating some moderation in capital buffers and marginal deterioration in asset quality. However, we believe that the company continues to show better resilience compared to its peers. Given its high-growth sectoral tailwinds and strong business execution, we remain optimistic about the company’s growth prospects. Based on its FY25 book value, the issue is valued at a P/B ratio of 3.2x at the upper price band, which we believe is fairly valued compared to its peers. Considering the above compelling factors, we recommend a “SUBSCRIBE” rating to this issue from a long-term perspective.
What is the Laxmi India Finance Limited IPO?
The initial public offer (IPO) of Laxmi India Finance Limited offers an early investment opportunity in Laxmi India Finance Ltd . A stock market investor can buy Laxmi India Finance Ltd IPO shares by applying in IPO before Laxmi India Finance Ltd shares get listed at the stock exchanges. An investor could invest in Laxmi India Finance Ltd IPO for short term listing gain or a long term.
How to apply for the Laxmi India Finance Ltd IPO through StoxBox?
To apply for the Laxmi India Finance Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Laxmi India Finance Ltd IPO open?
Laxmi India Finance Ltd IPO is opening on 29th Jul 2025. Apply Now
What is the lot size of the Laxmi India Finance Ltd IPO?
The Lot Size of Laxmi India Finance Limited IPO is 94 equity shares. Login to your account now.
When is the Laxmi India Finance Ltd allotment date?
The allotment Date for Laxmi India Finance Ltd IPO is 1st Aug 2025. Login to your account now.
When is the Laxmi India Finance Ltd IPO listing date?
The listing Date for Laxmi India Finance Ltd IPO is 5th Aug 2025. Login to your account now
What is the minimum investment required for the Laxmi India Finance Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,852. Login to your account now
What is the maximum investment allowed for the Laxmi India Finance Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 1,93,076. Login to your account now
What are the risks associated with investing in the Shanti Gold International Ltd IPO?
- The company’s significant portion of business operations and revenue generation is concentrated in Southern India, which accounted for 72.76% of its revenue from operations in FY25.This regional concentration exposes the company to various risks, including the economic vulnerability of these regions, shifts in consumer behavior, geopolitical, regulatory and local market risks such as natural disasters, infrastructure issues, or political instability, which could disrupt supply chains, operations, and sales in these regions.
- The company’s dependence on gold may expose it to market and demand fluctuations. Furthermore, the non-availability or high cost of quality gold could affect its ability to meet customer demand in a timely manner or lead to a decline in the quality of the jewellery produced, which may have an adverse effect on its business, results of operations, financial condition and prospects.
- The company’s business is dependent on its manufacturing capabilities at the Andheri Manufacturing Facility. Unplanned slowdowns, unscheduled shutdowns, or prolonged disruptions in its manufacturing operations, as well as an inability to effectively utilize its production capacity, could have an adverse effect on its business, results of operations, cash flows, and financial condition.
When will the Laxmi India Finance Ltd IPO shares be credited to my Demat account?
The Laxmi India Finance Limited. IPO be credited to the account on allotment date which is 4th Aug 2025. Login to your account now
Where can I find the Laxmi India Finance Limited IPO prospectus?
The prospectus of Laxmi India Finance Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
