Laxmi India Finance Opens: Subscribe On A Long-Term Basis, Says Angel One — Check Issue & Other Key Details

Laxmi India Finance plans to raise Rs 254.26 crore via IPO, comprising a fresh issue of 1.04 crore shares worth Rs 165 crore and an Offer for Sale of 56.38 lakh shares worth Rs 89 crore.

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Angel One Report

The Rajasthan-based non-banking financial company Laxmi India Finance Ltd.'s initial public offering opened for subscription on July 29 and the offer closes on July 31. The price band has been set at Rs 150-158 per share.

The company plans to raise Rs 254.26 crore via IPO, comprising a fresh issue of 1.04 crore shares worth Rs 165 crore and an Offer for Sale of 56.38 lakh shares worth Rs 89 crore.

Proceeds from the fresh issue will be used to strengthen the capital base for future lending, while offer-for-sale proceeds will go to existing shareholders.

The shares will be listed on both the National Stock Exchange and the BSE on  August 05.

Company Outlook

Laxmi India Finance Ltd. delivered strong performance in FY25 with revenue rising 42% YoY to Rs 245.7 crore and net profit growing 60% to Rs 36 crore. Net Interest Income grew by ~43.4% to Rs 116.7 crore, highlighting robust lending growth and improving interest spreads. Asset quality remained stable, with Gross NPA at 1.07% and Net NPA at 0.48%, while Return on Equity stood at 15.66%, reflecting steady profitability and disciplined underwriting .

At the upper price band of Rs 158, Laxmi India Finance is valued at a post-issue P/E of 22.9x and P/B of 1.95x, which remains below several listed peers, making the IPO reasonably priced; considering its RoNW of 15.7%, stable asset quality, and growth prospects, so we recommend a 'Subscribe' rating for the IPO for its long-term prospects.

Key Risks

1. Sector specific risk (monsoon, inflation

2. Regulatory compliance risk

3. Relatively small scale of business.

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