The IPO of Laxmi India Finance is now live, joining the list of companies tapping into the public markets this month. With a total issue size of approximately Rs 254 crore, the IPO combines a fresh issue and an offer for sale. The company is offering its shares within a price band of Rs 150 to Rs 158, with the subscription window open from July 29 to July 31. Investors now have three days to assess the company’s fundamentals and the overall demand before making a decision.

Of the total issue size, Rs 165.17 crore comes from a fresh issue of equity shares while Rs 89.09 crore comes through the offer for sale route by existing shareholders. The listing is expected to take place on August 5, following the allotment finalisation which is scheduled for August 1. The shares will be listed on both the Bombay Stock Exchange and the National Stock Exchange.

On the first day of bidding, the IPO saw a lukewarm response from investors. The overall subscription stood at 0.25 times by the end of Day 1. Within investor segments, retail investors subscribed 0.44 times, non-institutional investors 0.11 times, and qualified institutional buyers had not yet participated. While early participation is still building, the upcoming days will be crucial in determining the demand from institutional buyers.

In terms of market buzz, the grey market premium has remained modest so far. The shares were trading at a premium of Rs 7 in the unofficial market, hinting at a listing price of approximately Rs 165 per share. This indicates a possible listing gain of about 4.43 percent over the upper price band. However, grey market trends are unofficial and can fluctuate based on broader sentiment and subscription activity.

Financially, Laxmi India Finance has demonstrated consistent growth over the last three years. In the financial year 2023, the company reported a total income of Rs 130.67 crore and a net profit of Rs 15.97 crore. In 2024, revenue increased to Rs 175.02 crore with a net profit of Rs 22.47 crore. For the financial year 2025, it posted a total income of Rs 248.04 crore with a net profit of Rs 36.01 crore. The company has also reported an average earnings per share of Rs 7.26 and a return on net worth of 14.01 percent, which reflects a healthy growth trajectory and stable profitability.

The valuation, however, has drawn mixed reactions from analysts. According to Bajaj Broking, based on the annualised earnings for FY25, the price-to-earnings ratio stands at 22.93. When evaluated against FY24 earnings, the P/E ratio rises to 36.74. This implies that while the company has growing earnings, the valuation may feel slightly stretched for some investors, depending on future performance.

The company operates primarily in the financial services sector, with a specific focus on providing loans to underserved segments. Its core customers include micro, small, and medium enterprises across regional markets. This niche positioning allows Laxmi India Finance to address credit gaps in communities that often lack access to traditional lending institutions.

The IPO is being managed by PL Capital Markets, a well-known investment banking firm, while MUFG Intime India Pvt. Ltd. is serving as the registrar for the issue. These players are expected to streamline the bidding and listing process for the company.

For retail investors, the decision to subscribe should take into account the company’s consistent financial growth, modest grey market premium, and the current valuation landscape. As always, it is wise to evaluate not just the short-term listing gain potential but also the company’s business model and long-term prospects.

 

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