Laxmi India Finance Limited has submitted its draft red herring prospectus to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
Based in Jaipur, Laxmi India Finance is a non-banking financial institution that aims to serve underserved groups in India’s lending market. The company originated in the early 1990s with Deepak Finance & Leasing Company, a sole proprietorship started by the founder’s father. In 2010, the Promoter acquired the company’s shares and control, leading to the merger of DFL’s operations in 2011, which enhanced the strengths of both organizations.
Laxmi India Finance offers a variety of products, such as loans for micro, small, and medium enterprises (MSMEs), vehicles, and construction, addressing the financial needs of its clients. Over 80% of its MSME loans qualify for Priority Sector Lending as per Reserve Bank of India (RBI) guidelines, supporting small businesses and promoting economic growth.
As of June 30, 2024, the company reported an assets under management (AUM) of Rs. 1,035 crore. Of this total, MSME loans accounted for 75.49%, while vehicle loans made up 17.46%.
The IPO has a face value of Rs. 5 and consists of a fresh issue of 1,04,53,575 shares, along with a sale of up to 56,38,620 equity shares from Promoter and Promoter Group Selling Shareholders. Employees can also participate, with a discount available for those in the employee reservation section.
The offer includes shares from various shareholders, such as up to 3,084,952 from Deepak Baid, 913,070 from Prem Devi Baid, and others, totaling contributions from multiple parties.
Funds raised from the new issue will strengthen the company’s capital base for future lending and corporate needs.
The offering will use a book-building process, with up to 50% of the net offering for qualified institutional buyers. At least 15% will go to non-institutional bidders, while 35% is reserved for retail individual investors.
PL Capital Markets Private Limited is the exclusive book-running lead manager, and Link Intime India Private Limited is the registrar for this issue.