Laxmi India Finance IPO subscribed 0.37x on Day 1; retail shows higher participation

The initial public offering (IPO) of Laxmi India Finance received a muted response on its first day of bidding (July 29), with investors placing bids for 42.40 lakh shares against a total offer of 1.13 crore shares, resulting in an overall subscription of 0.37 times by the end of Day 1, according to exchange data.

The retail investors’ portion was subscribed 0.61 times, while the non-institutional investors’ (NII) portion was booked 0.19 times. The Qualified Institutional Buyers’ (QIB) portion saw a subscription of just 0.10 times.

Laxmi India Finance aims to raise ₹254.26 crore through the IPO, comprising a fresh issue of 1.05 crore shares aggregating to ₹165.17 crore and an offer for sale of 0.56 crore shares worth ₹89.09 crore. The IPO lot size is fixed at 94 shares, requiring a minimum investment of ₹14,852 for retail investors. The issue price has been set in the range of ₹150–158 per share.

The allotment for the IPO is expected to be finalized on Friday, August 1, 2025, with shares scheduled to list on both NSE and BSE on Tuesday, August 5. PL Capital Markets Private Limited is the book-running lead manager, while MUFG Intime India Private Limited (Link Intime) is the registrar for the issue.

The company plans to utilize the proceeds to augment its capital base and meet future lending requirements.

GMP signals muted listing

As of today, the grey market premium (GMP) for the Laxmi India Finance IPO stands at ₹0 per share, indicating that the shares are expected to list at par with the issue price.

The GMP reflects the anticipated difference between an IPO’s issue price and its expected listing price in the unofficial market. However, it is only a preliminary indicator and should not be the sole basis for investment decisions.

About Laxmi India Finance

The company is a non-deposit taking non-banking financial company focused on serving the financial needs of underserved customers in India’s lending market. As on March 31, 2025, its operational network spans across 158 branches in rural, semi-urban and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh.

Laxmi Finance has the widest reach in Rajasthan in terms of being the company with highest number of branches amongst its peers for the period ending FY25, the company said in its RHP report, citing CARE Report.

Its product portfolio includes MSME loans, vehicle loans, construction loans and other lending products catering to the diverse financial needs of its customers. The company’s MSME lending fuels economic growth and promotes financial inclusion by supporting small businesses and entrepreneurs, with over 80% of its MSME loans qualifying as Priority Sector Lending under RBI guidelines.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}