What is the story about?
Laxmi India Finance made a weak stock market debut on Tuesday, listing at a discount on both exchanges. Shares of Laxmi India Finance opened at ₹136 on the BSE, down 14% from the IPO price of ₹
158. On the NSE, the stock listed at₹137.52, a discount of 12.96%.
The listing came in even lower than GMP expectations. Ahead of its debut, the shares of Laxmi India Finance were trading at a premium of 2% in the grey market.
The issue closed with a healthy 1.86 times overall subscription, with strong retail participation at 2.20 times.
Laxmi India Finance's IPO was open for subscription from July 29 to July 31. The company raised ₹254.26 crore through the issue, with the price band set at ₹150-158 per share.
The IPO comprised a fresh issue of 1.05 crore shares aggregating to ₹165.17 crore and an offer-for-sale (OFS) of 0.56 crore shares worth ₹89.09 crore.
The net proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements for onward lending, ₹177 crore has been earmarked for this purpose.
Ahead of the IPO opening, the Rajasthan-based company raised ₹75.51 crore from 11 institutional investors through the anchor book.
Laxmi India Finance is
a non-deposit taking NBFC focused on providing tailored financial solutions to underserved customer segments across India.
The NBFC has 158 branches in rural, semi-urban and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh.
Laxmi Finance has the highest number of branches amongst its peers (MAS Financial Services, Five Star Business Finance, SBFC Finance, Ugro Capital, and Moneyboxx Finance) in Rajasthan provides MSME, vehicle, and construction loans.
Financially,
the company has consistently improved its balance sheet. Net worth rose from ₹152 crore in FY23 to ₹257 crore in FY25. Revenues grew from ₹129.5 crore to ₹245.7 crore over the same period.
PL Capital Markets was the sole book-running lead manager of the Laxmi India Finance IPO, while MUFG Intime India (Link Intime) was the registrar.
The listing came in even lower than GMP expectations. Ahead of its debut, the shares of Laxmi India Finance were trading at a premium of 2% in the grey market.
The issue closed with a healthy 1.86 times overall subscription, with strong retail participation at 2.20 times.
Laxmi India Finance's IPO was open for subscription from July 29 to July 31. The company raised ₹254.26 crore through the issue, with the price band set at ₹150-158 per share.
The IPO comprised a fresh issue of 1.05 crore shares aggregating to ₹165.17 crore and an offer-for-sale (OFS) of 0.56 crore shares worth ₹89.09 crore.
The net proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements for onward lending, ₹177 crore has been earmarked for this purpose.
Ahead of the IPO opening, the Rajasthan-based company raised ₹75.51 crore from 11 institutional investors through the anchor book.
Laxmi India Finance is
The NBFC has 158 branches in rural, semi-urban and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh.
Laxmi Finance has the highest number of branches amongst its peers (MAS Financial Services, Five Star Business Finance, SBFC Finance, Ugro Capital, and Moneyboxx Finance) in Rajasthan provides MSME, vehicle, and construction loans.
Financially,
PL Capital Markets was the sole book-running lead manager of the Laxmi India Finance IPO, while MUFG Intime India (Link Intime) was the registrar.
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