Laxmi India Finance Ltd. IPO: All you Need to Know

Systemic credit in India has grown steadily, from ₹134,500,000 million in FY19 to an estimated ₹236,000,000 million in FY25, and is projected to reach approximately ₹300,000,000 million by FY27, reflecting a healthy CAGR of 12%–13% between FY25 and FY27. The NBFC share in systemic credit has increased from 17% in FY19 to 19% in FY24 and is expected to reach 20% by FY27, highlighting the sector’s increasing importance in catering to under-served segments like MSMEs and priority sector lending. Commercial credit to MSMEs has maintained an 11% CAGR between Sep-2019 and Sep-2023. Within this segment, NBFC MSME AUM is projected to grow at a CAGR of 20%–22% and surpass ₹6,000,000 million by FY27, presenting a strong tailwind for LIF’s growth strategy.

Particulars	Details
IPO Open Date	July 29, 2025
IPO Close Date	July 31, 2025
Price Band	₹150 to ₹158 per share
Lot Size	94 Shares
Issue Size	₹2,542 mln
Listing At	BSE, NSE
Tentative Listing Date	[To be announced]

Laxmi India Finance (LIF) is a non-deposit taking, middle-layer NBFC primarily engaged in financing Micro, Small and Medium Enterprises (MSMEs) and vehicle loans. The company also offers construction loans and other lending solutions to meet diverse credit needs. As of March 31, 2025, LIF operates through 158 branches spread across rural, semi-urban, and urban regions in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh.

The company reported AUM of ₹12,770.18 million in FY25, with MSME loans contributing 76.34% and vehicle loans 16.12%. The total customer base stood at 35,568, comprising 18,596 active MSME customers and 12,423 active vehicle loan customers.

LIF has demonstrated robust operational and financial growth across key KPIs over the last 3 fiscal years. The company’s branch network expanded to 158 in FY25 (vs. 135 in FY24), supported by a sharp increase in employee count to 1,434. This physical expansion translated into strong AUM growth—up 32.8% YoY to ₹12,770 million—while disbursements surged 36.8% to ₹7,185 million. Notably, the MSME loans segment continues to be the primary growth engine, accounting for ~76% of total AUM. Despite rapid asset growth, the company maintained prudent credit standards, with gross NPA at a low 1.07% and a provision coverage ratio of 55.2%. Per-employee and per-branch productivity metrics improved, underscoring efficiency gains from scaling.

On the profitability front, the company reported a healthy 58.8% YoY increase in PAT to ₹359 million in FY25, driven by expanding net interest income and stable yield profiles (spread rose to 9.90%). ROA stepped up to 3% in FY25. However, rising impairment ratios and a marginally declining CRAR (now 20.8%) signal the need for vigilant portfolio monitoring amid expansion. The average cost of borrowings remained stable at ~12%, indicating controlled funding costs.

Objects of the issue:

1. Augmenting capital base- ₹1770 million

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