Did Laxmi India Finance Have a Disappointing Stock Market Debut?
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Synopsis
Laxmi India Finance's stock market debut was met with disappointment, opening at a significant discount. Despite this, the IPO saw strong investor interest, highlighting the firm's growth potential in the financial sector.
Key Takeaways
- 14 percent discount on stock market debut.
- IPO subscribed 1.86 times overall.
- Strong retail participation at 2.20 times.
- Plans to raise Rs 177 crore for future lending needs.
- 158 branches across multiple states in India.
Mumbai, Aug 5 (NationPress) Laxmi India Finance experienced a lackluster entry into the stock market on Tuesday, debuting with a 14 percent discount on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The company’s shares commenced trading at Rs 136 on the BSE, a drop from the IPO price of Rs 158. On the NSE, the stock opened at Rs 137.52, reflecting a 12.96 percent discount, as per official data.
This opening price fell short of expectations set by the grey market premium (GMP), which had indicated a modest 2 percent premium prior to the listing.
Despite this disappointing start, the IPO garnered a respectable response from investors, achieving a total subscription rate of 1.86 times, with retail participation at 2.20 times.
The IPO was available for subscription from July 29 to July 31, raising Rs 254.26 crore with a price band set between Rs 150–158 per share.
The offering included a fresh issue of 1.05 crore shares valued at Rs 165.17 crore and an offer-for-sale (OFS) of 0.56 crore shares amounting to Rs 89.09 crore.
The company intends to allocate Rs 177 crore from the fresh issue proceeds to bolster its capital base and meet upcoming lending needs.
Before the IPO opened, Laxmi India Finance secured Rs 75.51 crore from 11 institutional investors through the anchor book.
Located in Rajasthan, Laxmi India Finance is a non-deposit-taking NBFC focused on delivering tailored financial solutions to underserved customer segments nationwide.
With 158 branches across rural, semi-urban, and urban areas in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh, Laxmi India Finance holds the record for the highest number of branches among its peers in Rajasthan, offering MSME, vehicle, and construction loans.
Over the past two financial years, Laxmi India Finance has demonstrated steady growth, with its net worth rising from Rs 152 crore in FY23 to Rs 257 crore by FY25, while revenues nearly doubled from Rs 129.5 crore to Rs 245.7 crore in the same timeframe.
PL Capital Markets served as the sole book-running lead manager for the IPO, while MUFG Intime India (Link Intime) acted as the registrar.
Point of View
I believe that Laxmi India Finance's stock market performance reflects a broader trend of cautious investor sentiment. While their debut may not have met expectations, the strong subscription numbers indicate a solid foundation and potential for future growth. It's crucial for stakeholders to look beyond initial volatility and focus on the company's long-term strategies.
NationPress
05/10/2025
Frequently Asked Questions
What was the opening price of Laxmi India Finance shares?
The shares opened at Rs 136 on the BSE and Rs 137.52 on the NSE.
How much was the IPO subscribed?
The IPO was subscribed 1.86 times in total, with retail investors participating 2.20 times.
What does Laxmi India Finance do?
Laxmi India Finance is a non-deposit-taking NBFC offering customized financial solutions to underserved segments across India.
How many branches does Laxmi India Finance operate?
The company operates 158 branches across several states including Rajasthan, Gujarat, and Uttar Pradesh.
What are the key financial metrics for Laxmi India Finance?
The company's net worth grew from Rs 152 crore in FY23 to Rs 257 crore in FY25, while revenues nearly doubled from Rs 129.5 crore to Rs 245.7 crore in the same period.
