Laxmi India Finance share price recovered some of losses during Tuesday’s trading session following a disappointing debut, although it continued to trade below the initial listing price.
Shares of Laxmi India Finance, a non-banking financial company, debuted at a discount of 14% relative to the issue price of ₹158. The stock opened at ₹136, reflecting a decrease of 13.92% compared to the issue price on the BSE. At 13:50 IST, the stock was trading at ₹137.40 apiece.
On the NSE, the stock dropped 12.96% to ₹137.52 during the initial trading session. The company’s market capitalisation was recorded at ₹741.42 crore on the NSE.
The initial public offering (IPO) of Laxmi India Finance was oversubscribed 1.85 times by the closing day of the share sale on Thursday. Before that, Laxmi India Finance announced it had secured over ₹75 crore from anchor investors. Laxmi India Finance IPO price band was set in the range of ₹150-158 per share.
Laxmi India Finance share price Outlook
As stated by Arun Kejriwal, the founder of Kejriwal Research and Investment Services, Laxmi India listing was a disaster. Consequently, the stock has declined by approximately ₹20, which is around 12.77%; not much was anticipated, nor should anything significant be expected from current levels. If you participated in the offering and were unfortunate enough to acquire shares, you have the option to either sell at this point or wait for the forthcoming quarterly results.
However, for one’s own safety, it would be better to put a stop loss somewhere at a lower level so that the losses don’t widen beyond a normal level.
According to Avinash Gorakshakar, a SEBI-registered research analyst,Laxmi India, an NBFC finance company largely funding MSMEs and based in Jaipur, has not got a favourable listing, as markets perceived the valuation to be rich as compared to other players and would prefer to wait for some strong performance ahead, only after which the stock will get repeated ahead.
Further, Harshal Dasani, Business Head, INVasset PMS, added that investors should also consider the macro context. With RBI unlikely to cut rates immediately and cost of funds elevated, smaller NBFCs with high-yield lending books may face NIM pressure. Laxmi’s return profile — ROE ~15% — is respectable, but not enough to justify premium valuations in this environment. Until the company demonstrates consistent growth, diversified funding, and scalability across geographies, the stock may stay range-bound. For now, the listing price looks like a ceiling, not a floor. Long-term potential exists — but patience and proof of execution are key.
Laxmi India Finance IPO Details
Laxmi India Finance IPO consists of a new issue of 1.04 crore equity shares and a promoters’ offer for sale of 56.38 lakh shares. The total size of the IPO is estimated at ₹254.26 crore at the highest end of the price range.
Funds raised from the new issue will be utilized to strengthen its capital base to support future lending needs and for various corporate purposes.
PL Capital Markets is the exclusive lead manager for the IPO.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
