The IPO of Laxmi India Finance, which concluded recently, is set to debut on the Indian stock exchanges on Tuesday, August 05. The issue received a modest response during its bidding period between July 29 and July 31, resulting in an overall subscription of 1.86 times.
The IPO received total bids for 2.10 crore shares against 1.13 crore shares offered. The retail investors’ portion was subscribed 2.20 times, while the NII and QIB portions were booked 1.83 times and 1.30 times, respectively.
As the bidding period has ended, investor focus has now shifted to potential listing gains, typically gauged by the grey market premium (GMP). According to market sources, the company’s shares are quoting at ₹0 in the grey market, indicating that the shares might list at the same price as the issue price at ₹158 per share or at a slight discount.
The grey market premium reflects investors’ willingness to pay a premium over the IPO price. If the GMP is trading at 0 ahead of the listing, it typically suggests that the stock might have a muted debut on the exchanges.
The mainboard IPO, valued at ₹254.26 crore, is a combination of a fresh issue of 1.05 crore shares aggregating to ₹165.17 crores and an offer for sale of 0.56 crore shares aggregating to ₹89.09 crore.
The company shares are to be listed on both NSE and BSE exchanges, and it proposed to utilize the proceeds from the IPO for augmentation of the capital base to meet the future capital requirements towards onward lending and for general corporate purposes.
PL Capital Markets Private Limited is the book-running lead manager of the Laxmi India Finance IPO, while MUFG Intime India Private Limited (Link Intime) is the registrar for the issue.
About Laxmi India Finance
The company is a non-deposit-taking, non-banking financial company focused on serving the financial needs of underserved customers in India’s lending market. As of September 30, 2024, its operational network spans across 139 branches in rural, semi-urban, and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh.
The company, in its RHP report, citing the Care report, said that it has the widest reach in Rajasthan in terms of being the company with the highest number of branches amongst its peers for the period ending FY24.
Its product portfolio includes MSME loans, vehicle loans, construction loans, and other lending products catering to the diverse financial needs of its customers, with 80% of its MSME loans qualifying as priority sector lending under RBI guidelines.
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