Laxmi India Finance IPO set for debut today. Check GMP ahead of listing

Synopsis

Laxmi India Finance, a Jaipur-based NBFC specializing in MSME and vehicle loans, is set to debut on the stock market on Tuesday. The IPO, priced at Rs 158, saw a subscription of 1.86 times, with strong retail participation. While analysts view the stock as fairly valued, its regional focus and leverage warrant consideration.

Jaipur-based non-banking finance company Laxmi India Finance is set to make its stock market debut on Tuesday with the issue commanding a modest 2% grey market premium (GMP) over its IPO price of Rs 158.

The Rs 254.26-crore IPO, comprising a fresh issue and an offer for sale, closed with a healthy 1.86 times overall subscription, with strong retail participation at 2.20 times.

Incorporated in 1996, Laxmi India Finance is a regional NBFC with a stronghold in Rajasthan and presence across Gujarat, Madhya Pradesh, and Chhattisgarh. It focuses on priority-sector lending to MSMEs and vehicle loan customers. As of March 2025, its AUM stood at Rs 1,277 crore, with MSME lending making up over 76% of the portfolio.

The IPO was priced at Rs 158 per share, valuing the company at Rs 826 crore market cap post-issue. It reported a net profit of Rs 36 crore on revenues of Rs 248 crore in FY25, reflecting YoY growth of 60% and 42%, respectively.

Analysts view the stock as fairly valued, though opinions are divided due to its regional focus, high leverage, and moderate asset quality indicators. Still, its efficient hub-and-spoke model, tech-enabled sourcing, and high first-time borrower base support its long-term lending strategy.

The stock will list on both NSE and BSE on August 5, and early trade will reveal whether the slight GMP translates into listing-day gains or if the counter sees muted action.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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