NBFC Laxmi India Finance files draft papers to raise funds via IPO

Laxmi India Finance IPO

Laxmi India Finance, the non-deposit taking NBFC, has filed preliminary papers with the capital markets regulator SEBI to raise funds via initial public offering of 1.6 crore equity shares.

The IPO comprises a fresh issue of 1.04 crore equity shares, and an offer-for-sale of 56.38 lakh shares by promoters. Deepak Baid family owns 89.05 percent stake in the company, and the remainder 10.95 percent shares are held by the public shareholders.

The Rajasthan-based non-banking financial company provides MSME, vehicle, construction loans and other lending products through network of 139 branches in rural, semi-urban and urban areas in Rajasthan, Gujarat, Madhya Pradesh and Chhattisgarh, with Rajasthan contributing the most with highest number of branches amongst its peers.

The finance provider competes with listed peers like MAS Financial Services, Five Star Business Finance, SBFC Finance, Ugro Capital, CSL Finance, AKME Fintrade, and Moneyboxx Finance.

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Laxmi India will utilise fresh issue funds for augmenting its capital base to meet future business requirements towards onward lending, and the remainder money for general corporate purposes.

On the financials front, the net profit in the year ended March 2024 grew by 41.1 percent to 22.6 crore compared to Rs 16 crore in the previous fiscal. Net interest income during the same period increased by 31.3 percent to Rs 81.4 crore, while the assets under management at Rs 961.4 crore in the fiscal 2024 grew by 40 percent from Rs 686.8 crore in the previous fiscal.

Profit in three months period ended June 2024 stood at Rs 6.6 crore with net interest income at Rs 23.9 crore, while assets under management was at Rs 1,035.5 crore.

PL Capital Markets is the sole book running lead manager handling the public issue.