About Laxmi India Finance Ltd (LIFCL)
Laxmi India Finance Leasing Company Limited (LIFCL) is a leading non-banking financial company (NBFC) specializing in secured lending products. Founded in 1996, headquartered in Jaipur, Rajasthan.
Key data:
- Branches: 139+ across Rajasthan, Gujarat, MP, Chhattisgarh, Punjab, Haryana, Maharashtra
- Customers: 35,500+ (as of March 2025)
- Specialty: MSME, vehicle, and construction sector lending
- Tech-driven: App-based loan tracking and real-time collections
Key IPO Details & Timeline
| Details | Values |
|---|---|
| IPO Open Dates | July 29 – July 31, 2025 |
| Listing Date | August 5, 2025 |
| Price Band | ₹150 – ₹158 per share |
| Face Value | ₹5 |
| Lot Size | 94 Shares (₹14,852 min) |
| Total Issue Size | ₹254.26 crore |
| Fresh Issue | 1.04 crore shares (₹165.17 cr) |
| Offer for Sale | 56.38 lakh shares (₹89.09 cr) |
| Stock Exchanges | BSE, NSE |
| Registrar | Link Intime |
Financial Performance & Growth Story
Laxmi India Finance has demonstrated robust growth in recent years—a key highlight for potential investors:
| Year Ended | Revenue (₹ Cr) | Net Profit (₹ Cr) | Asset Under Management (AUM) (₹ Cr) | ROE (%) |
|---|---|---|---|---|
| FY23 | 130.67 | 15.97 | ~900 | ~13 |
| FY24 | 175.02 | 22.47 | ~1,035 | ~14 |
| FY25 (Est) | 248.04 | 36.01 | 1,277 | ~14 |
- EBITDA margin: Above 66% (FY25E)
- Return on Net Worth (RoNW): 13.95%–14% (average)
- EPS (Avg 3 Years): ₹7.26
- Revenue grew from ₹130.7 Cr (FY23) to ₹248.0 Cr (FY25) (~42% YoY);
- PAT rose from ₹15.97 Cr to ₹36.01 Cr (~58.7% YoY)
Use of IPO Proceeds
- Fresh issue proceeds (~₹165 Cr) aimed at strengthening capital base for future lending.
- OFS (~₹89 Cr) proceeds entirely go to selling promoters; company receives no direct benefit from OFS portion
Grey Market Premium & Subscription Stats
- GMP: ₹9 (as of July 29, 2025); indicates a 5.7% listing premium over upper band.
- Day 1 Subscription: 32% overall on opening day; retail better at ~15%, NIIs/Institutions slower start.
- Issue Valuation:
- Price/Earnings (P/E): 22.9x (FY25 annualized), 36.7x (FY24)
- RoNW: ~14%
Strengths & Risks (Laxmi India Finance)
✅ Strengths
- Strong MSME-focused lending in underserved geographies (75–80% of branch presence in rural/semi‑urban India)
- High growth in AUM and profits, secured lending with low LTV ratios, strong funding network and risk framework
⚠️ Risks
- Regional concentration: ~80% exposure in Rajasthan, limited geographic diversification
- Rising NPAs, high valuation: P/E ~22.9× FY25 earnings, P/B ~2.57× (some peers at ~2×)
Analyst Ratings & Recommendations
- Canara Bank Securities: “Subscribe – long term,” cites good MSME positioning and future expansion potential despite higher P/B.
- SBI Securities: Positive on financials and risk control; cautious on scale and valuations.
- Marwadi, SMIFS, Ventura, Swastika Investmart: Mostly “Subscribe with caution” or long-term, noting relatively higher valuations but strong growth outlook businesstoday
- Bajaj Broking and industry analysts recommend “Subscribe” for long-term investors citing strong growth in MSME lending, experienced management, and profitability
How to Apply: Step-by-Step
- ASBA via Bank: Log into your bank’s net banking portal → Invest in IPO section → Select “Laxmi India Finance” → Apply, confirm UPI.
- Brokerage Apps: e.g., Zerodha, Upstox, Groww – open “IPO” section, select, and apply.
- UPI Mandate: Complete UPI payment before 5 PM, July 31, 2025.
Disclaimer
This article on eduworldnews is for informational purposes only and does not constitute investment advice or a solicitation. IPO investments carry market risks. Please read the Red Herring Prospectus and consult a SEBI-registered financial advisor before investing. Image credits go to respective owners where applicable; images used are either public domain or from licensed sources.