Laxmi India Finance Makes Weak Market Debut, Lists 14% Below IPO Price

Laxmi India Finance Ltd made a muted debut on the stock exchanges on Monday, listing significantly below its issue price. Despite a decent subscription and the company’s solid lending background, investor response on listing day remained underwhelming.

Listing Details

On the BSE, Laxmi India Finance share price opened at ₹136, which is 13.92% lower than the IPO price of ₹158. The story was similar on the NSE, where the stock listed at ₹137.52, reflecting a 12.96% discount to its issue price.

“The shares listed at a discount of nearly 14%, disappointing many retail and institutional investors who were expecting a better debut.”

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IPO Overview

The company’s initial public offering (IPO) included a fresh issue worth ₹165 crore and an offer for sale (OFS) of ₹89 crore. The IPO price band was set between ₹150 and ₹158 per share, and it remained open for subscription between July 29 and July 31.

Use of Proceeds

The proceeds from the fresh issue are intended to boost the company’s capital base, allowing Laxmi India Finance to meet future capital requirements for onward lending. The company’s strategy focuses on expanding its loan book and supporting small and medium businesses across India.

“Funds raised will help the company strengthen its lending capacity and cater to more borrowers, especially in underserved sectors.”

Company Background

Founded in 1996, Laxmi India Finance Limited is a non-banking financial company (NBFC) that provides a wide range of loans including:

• MSME loans

• Vehicle loans

• Construction loans

• Other financial services

The company is known for supporting small businesses and entrepreneurs, with over 80% of its MSME loan portfolio falling under Priority Sector Lending, a key focus area for financial inclusion in India.

“The company plays a crucial role in empowering MSMEs and promoting financial access in Tier 2 and Tier 3 cities.”

Issue Management

The IPO was managed by PL Capital Markets Private Limited, which served as the book-running lead manager, while MUFG Intime India was the registrar for the issue.

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