Laxmi India Finance IPO Closes With Subdued Interest on Final Day; GMP Falls – What Could Be the Reason?

Laxmi India Finance's initial public offering (IPO) closed on Thursday, July 31, 2025, with the issue fully subscribed by the end of Day 3. The IPO received a modest bidding interest from investors across all categories on all three days. The IPO received an overall subscription of 1.12 times with mixed investor sentiments.

Laxmi India Finance IPO Subscription Details:

The IPO received bids for 1.26 crore shares against the 1.13 crore on offer, resulting in a subscription of 1.12 times. Retail investors led the way, subscribing 1.38 times their portion, while non-institutional investors (NII) subscribed 1.33 times. Employees subscribed 1.18 times. The qualified institutional buyer (QIB) category saw lower interest at 51%, according to NSE data.

Laxmi India Finance IPO Details:

The company aims to raise Rs 254.26 crore through the IPO. This includes a fresh issue of Rs 165.17 crore and an offer-for-sale (OFS) worth Rs 89.09 crore. Shares were priced in the range of Rs 150 to Rs 158, and retail investors could apply for a minimum of 94 shares, requiring a starting investment of Rs 14,100.

Laxmi India Finance IPO was open for bidding from July 29 to July 31, 2025. The share allotment is likely to be finalized on Friday, August 1, 2025. The company's shares are expected to list on both BSE and NSE on August 5, 2025.

Ahead of the IPO, Laxmi India Finance secured Rs 75.5 crore from anchor investors by allotting 47.79 lakh shares at Rs 158 each.

PL Capital Markets Private Limited is managing the Laxmi India Finance IPO, while MUFG Intime India Private Limited (also known as Link Intime) is handling the share allotment and investor records.

The company plans to use Rs 143 crore from the IPO to increase its capital base and support future lending needs.

Laxmi India Finance IPO GMP:

Sentiment in the grey market dipped lowest today. The grey market premium (GMP), which had reached Rs 18 before the IPO opened, fell sharply to Rs 1 on the final day, indicating only a nominal potential listing gain of less than 1%.

What Brokerages Said?

The drop in GMP reflects some caution in the market, but analysts remain mostly positive about the company's long-term growth potential, especially given its steady financial performance and focus on the growing MSME segment.

Bajaj Broking recommended 'Subscribe for Long Term', highlighting consistent earnings growth and a focused lending strategy. The IPO's valuation, based on FY25 earnings, was seen as fair with a P/E ratio of 22.93.

The company has had robust financial performance for the past three years, where revenue has grown at a CAGR of 38% from 129 Cr to 245 Cr. The company is well positioned to take advantage of the MSME surge in India. We recommend SUBSCRIBE for the long-term gains," said Canara Bank.

"We assign a "Subscribe" rating to this IPO as the company has a strong focus on MSME financing and operates with a Hub and Branch model that enhances operational efficiency, reduces costs, and improves customer outreach. Also, it is available at reasonable valuation as compared to its peers," said Marwadi Financial Services.

Investors with a long-term view and higher risk appetite may find this IPO a reasonable bet. However, short-term gains may be limited due to weak market sentiment and low GMP.

About the Company:

Founded in 1996, Laxmi India Finance is a non-banking financial company (NBFC) focused on MSME loans, vehicle finance, construction loans, and other credit services.

Over 80% of its MSME loans qualify as priority sector lending, making it a key player in financial inclusion. The company primarily serves customers in underserved markets, using a hub-and-branch model to keep costs low and expand outreach.

Disclaimer
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