Laxmi India Finance IPO: GMP Indicates 8% Premium Ahead Of July 29 Launch

Laxmi India Finance Ltd. is set to launch its initial public offering (IPO) to raise over Rs 250 crore from the primary market. It is a Non-Banking Financial Company (NBFC) that provides a wide range of financing options such as personal loans, construction loans and MSME loans. Investors who want to bid for shares in the IPO can check the following details before submitting their applications.

According to InvestorGain, the grey market premium (GMP) for the Laxmi India Finance IPO stood at Rs 13 as of 8:32 a.m. on July 28. It indicates a listing price of Rs 171 apiece at a premium of 8.23% over the upper limit of the IPO price band. 

Note: GMP does not represent official data and is based on speculation.

The mainboard IPO is a book-building issue worth Rs 254.26 crore. It comprises a fresh issue of 1.05 crore shares, worth Rs 165.17 crore, and an offer-for-sale (OFS) component of 56 lakh shares worth Rs 89.09 crore.

To participate in the IPO, retail investors need to bid for a single lot size of 94 shares, requiring an investment of Rs 14,100. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,07,928. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 68 lots. It will lead to an investment of Rs 10,09,936.

The price band for the IPO is set between Rs 150 and Rs 158 per share.

Investors can participate in the IPO subscription from July 29 to July 31. The IPO allotment status is proposed to be finalised on Aug. 1. The company will transfer shares to the Demat accounts of successful bidders on Aug. 4 and refunds for non-allottees will be initiated on the same day. 

Shares of Laxmi India Finance are scheduled to be listed on the BSE and NSE on Aug. 5. 

Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the net offer. Retail investors will be allocated at least 35% of the net issue and the remaining 15% will be reserved for Non-Institutional Investors. 

PL Capital Markets Pvt. is the book-running lead manager of the Laxmi India Finance IPO. MUFG Intime India Pvt. is the registrar for the issue.

The company will use the net proceeds from the issue to increase the capital base for funding needs for further lending.

Laxmi India Finance is an NBFC that provides loans to underserved customers in India. Its product portfolio includes MSME loans, vehicle loans, business loans and personal loans. 

Laxmi India Finance reported a 58.8% year-on-year (YoY) increase in profit to Rs 35.91 crore in FY25 from Rs 22.62 crore in FY24. Total income rose 41.7% YoY to Rs 248.04 crore in FY25 from Rs 175.02 crore in FY24. Total borrowings grew 48.3% YoY to Rs 1,137.1 crore in FY25 from Rs 766.7 crore in FY24.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.