Laxmi India Finance make weak debut on stock market, shares list at 14 pc discount

Mumbai, Aug 5 Laxmi India Finance made a weak debut on the stock market on Tuesday, listing at a discount of 14 per cent on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The company’s shares opened at Rs 136 on the BSE, down from the IPO price of Rs 158. On the NSE, the stock listed at Rs 137.52, a discount of 12.96 per cent, according to the official data.

The listing price was lower than what the grey market premium (GMP) had indicated. Before its debut, the shares were trading at a modest 2 per cent premium in the grey market.

Despite the disappointing debut, the IPO had received a decent response from investors. It was subscribed 1.86 times in total, with retail participation standing at 2.20 times.

The issue was open for subscription from July 29 to July 31 and raised Rs 254.26 crore, with a price band of Rs 150–158 per share.

It included a fresh issue of 1.05 crore shares worth Rs 165.17 crore and an offer-for-sale (OFS) of 0.56 crore shares valued at Rs 89.09 crore.

The company plans to use Rs 177 crore from the fresh issue proceeds to strengthen its capital base and meet future lending requirements.

Before the IPO opened, Laxmi India Finance raised Rs 75.51 crore from 11 institutional investors through the anchor book.

Based in Rajasthan, Laxmi India Finance is a non-deposit-taking NBFC that provides customised financial solutions to underserved customer segments across the country.

It operates 158 branches in rural, semi-urban, and urban areas of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh.

The company has the highest number of branches among its peers in Rajasthan and offers MSME, vehicle, and construction loans.

Over the last two financial years, Laxmi India Finance has shown steady growth. Its net worth increased from Rs 152 crore in FY23 to Rs 257 crore in FY25, while revenues nearly doubled from Rs 129.5 crore to Rs 245.7 crore during the same period.

PL Capital Markets acted as the sole book-running lead manager for the IPO, and MUFG Intime India (Link Intime) served as the registrar.

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