The initial public offering (IPO) of Laxmi India Finance Ltd, a Jaipur-based non-deposit-taking NBFC, was fully subscribed on July 31, 2025, the third and final day of the issue. According to NSE data, the IPO received bids for 1.24 crore shares, surpassing the 1.13 crore shares on offer.

The retail investor segment saw robust participation, with the Retail Individual Investors (RIIs) category subscribed 1.58 times. The non-institutional investor (NII) category saw 82% subscription, while the Qualified Institutional Buyers (QIBs) segment was subscribed 45%.

The IPO, which opened on July 29, comprised a fresh issue of 1.84 crore shares and an offer for sale (OFS) of 56.38 lakh shares by promoters, taking the total issue size to ₹254.26 crore at the upper price band. Ahead of the public issue, Laxmi India Finance raised over ₹75 crore from anchor investors on July 28.

Founded as a diversified NBFC, Laxmi India Finance provides MSME loans, vehicle finance, and construction loans, catering primarily to underserved geographies across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh through its 158-branch network.

The company reported a 42% YoY jump in FY25 revenue to ₹246 crore, while net profit surged 60% to ₹36 crore. Its Assets Under Management (AUM) have grown at a 36% CAGR over the last two years, reaching ₹1,277 crore as of March 2025, up from ₹687 crore in FY23.

Bajaj Broking, which recommends the IPO for long-term investors, highlighted the NBFC’s strong access to diverse capital sources, efficient cost of funds, and robust credit assessment systems. However, it also flagged potential concentration and asset quality risks, with 81% of revenue coming from MSME loans—a sector vulnerable to economic cycles and regulatory shifts.

Although 98.81% of loans are secured, the firm remains exposed to delinquencies in MSME and vehicle loan segments, similar to market-wide stress observed in unsecured loans for two- and three-wheelers.

The IPO proceeds from the fresh issue will be used to augment capital for onward lending and meet general corporate purposes, strengthening Laxmi India Finance’s growth momentum.

PL Capital Markets is the sole book-running lead manager to the issue.