Laxmi India Finance, a non-deposit-taking non-banking financial company (NBFC), has just taken a big step forward by submitting its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This move is all about gearing up for a significant Initial Public Offering (IPO), aiming to inject substantial capital into the company. What makes Laxmi India Finance stand out is its commitment to serving those who are often overlooked in the financial sector, focusing on customers in several Indian states.
By the end of September 2024, Laxmi India Finance had spread its wings across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh, boasting 139 branches. The company provide a mix of MSME loans, vehicle loans, and construction loans, which are pivotal in driving financial inclusion and supporting the backbone of India’s economy — the small businesses.
Laxmi India Finance IPO Details
- Fresh Issue: The Company is looking at issuing up to 1,04,53,575 new equity shares, each with a face value of INR 5, hoping to raise a certain amount of money — the exact figure is still under wraps.
- Offer for Sale: Up to 56,38,620 existing shares will be sold by current shareholders.
- Total Offer: That adds up to 1,60,92,195 shares on the table, which should bring in a hefty sum.
The Book Running Lead Manager (BRLM) to the issue is PL Capital Markets and the Registrar to the issue is Link InTime India.
Promoters and Key Players
The backbone of Laxmi India Finance includes seasoned promoters like Deepak Baid, Prem Devi Baid, Aneesha Baid, and a few private companies and family trusts. These names are not just faces; they’re the driving force behind the company’s vision and growth strategy. Major share off-loading from the stakeholders are:
- Deepak Baid off-loading up to 30,84,952 shares.
- Prem Devi Baid selling up to 9,13,070 shares.
- Aneesha Baid with 12,61,902 shares.
Financial Highlights and Growth Plans
As of mid-2024, the company’s assets under management (AUM) hit INR 1,035.54 crore, a dramatic increase from INR 531.60 crore in March 2022 — that’s a CAGR of around 34.49%. With the fresh capital from the IPO, Laxmi India Finance plans to:
- Broaden its loan products.
- Open more branches where they’re needed most.
- Upgrade tech systems to streamline operations.
Laxmi India Finance’s IPO – A New Chapter
Filing the DRHP is more than just paperwork; it’s a signal that Laxmi India Finance is ready to play in the big leagues. With a business model centred on inclusion and support for small enterprises, and with a team of savvy promoters at the helm, the company is all set to make waves in the competitive NBFC sector.
As we watch how this IPO unfolds, investors will be keen to see if Laxmi India Finance can turn these ambitious plans into tangible growth, reinforcing its position in India’s bustling financial services landscape.
As many as 11 IPOs from the finance sector are listed in 2024 so far. Among them, Bajaj Housing Finance has delivered tremendous returns of over 135%. The average return on the listing day of the finance sector’s IPOs stands at 17.66%. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
