Laxmi India Finance Plans to Raise ₹254 Crore Through IPO, Opening July 29

The company aims to strengthen its lending base across five states through public funding

Why is a regional lender expanding so fast across states? That’s the question market watchers are now asking as Laxmi India Finance Limited, a Rajasthan-based non-banking finance company (NBFC), prepares to enter the primary market with its ₹254.26 crore initial public offering (IPO). The issue will open on July 29, 2025, and close on July 31. The price band has been fixed at ₹150 to ₹158 per share.

The company, which has its roots in Jaipur, has seen sharp growth in its asset under management (AUM) and branch expansion. With its IPO, it now seeks to increase capital for loan disbursement, mainly in MSME and vehicle loan segments.

Business Journey and Regulatory Identity

Laxmi India Finance was first incorporated in May 1996 as a private company under the name Laxmi India Finleasecap Pvt Ltd. It became a public limited entity in October 2024. 

It is registered with the Reserve Bank of India as a non-deposit-taking NBFC and holds multiple RBI registrations, notably, in Delhi (2001), Kolkata (2018), and Jaipur (2021 and 2023). These approvals reflect the company’s efforts to formalise its expansion and regulatory compliance.

The company operates in five states: Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. As of March 2025, it had 158 active branches and a growing AUM of ₹1,277 crore, which is nearly double the ₹961 crore recorded in March 2024.

To understand where the funds will go, it’s essential to look into the IPO structure next.

Issue Details and Fund Allocation

The IPO includes both a fresh issue of shares and an offer for sale (OFS) by existing shareholders. The fresh issue is expected to raise around ₹165.17 crore, while the OFS will offload equity worth ₹89.09 crore. Each share has a face value of ₹5, and investors can bid for a minimum of 94 shares in one lot.

The proceeds from the fresh issue will be used mainly to strengthen the company’s Tier-I capital base, which will help support future loan growth. As disclosed in the Red Herring Prospectus (RHP) filed with SEBI on July 22, 2025, a portion of the funds may also be used to improve internal processes and support general corporate purposes.

What’s important to note is how the company is preparing for a large investor base and stock exchange compliance.

Timeline, Listing Plans, and Promoter Holding

According to the same RHP and BSE filings dated December 18, 2024, the anchor investor allotment is scheduled for July 28, a day before the public offer opens. Refunds and allotment processing are expected by August 4. The listing on both BSE and NSE is planned for August 5.

Promoters will continue to hold a major stake in the company even after the IPO. However, both promoter and anchor investors will be subject to a lock-in period as per SEBI rules. This means they can’t sell their shares right away, which adds a layer of stability and could boost confidence among retail and institutional investors in the early days of trading.

Services Offered and Operational Spread

The company provides loans to MSMEs, commercial and personal vehicles, and two-wheeler financing. It also engages in construction equipment loans and other secured lending. This multi-category lending strategy helps the company serve both urban and semi-urban borrowers.

The company is registered under GST across multiple states, and has active enrolments with EPFO and ESIC since May 2018. It also holds CERSAI and LEI registrations, which are mandatory for NBFCs engaged in secured lending.

Conclusion

Laxmi India Finance is stepping into a new chapter of its journey. After nearly three decades of steady growth, the company is now looking to move beyond its regional roots and build a stronger presence across central and western India. This IPO is a signal that the company is ready to scale up its ambitions.

With solid financials, a fast-growing branch network, and all the right regulatory clearances in place, Laxmi India Finance has laid the groundwork for its next phase. The detailed filings show that the company has a clear plan and structure behind its expansion. Now, with investor support, it’s aiming to become a more prominent player in the lending space.
 

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