The IPO with a face value of Rs 5 is a mix of fresh issue of shares up to 1,04,53,575 and an offer for sale of up to 56,38,620 equity shares by Promoter and Promoter Group Selling Shareholders.
FinTech BizNews Service
Mumbai, 23 December, 2024: Jaipur-based non-banking financial company, Laxmi India Finance Limited, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO). The IPO with a face value of Rs 5 is a mix of fresh issue of shares up to 1,04,53,575 and an offer for sale of up to 56,38,620 equity shares by Promoter and Promoter Group Selling Shareholders. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
Offer for Sale consists of shareholders selling shares up to 3,084,952 Equity Shares by Deepak Baid, up to 913,070 Equity Shares by Prem Devi Baid, up to 1,261,902 Equity Shares by Aneesha Baid, Up to 180,000 Equity Shares by Deepak Hitech Motors, up to 90,000 Equity Shares by Prem Dealers Private Limited, up to 54,348 Equity Shares by Preeti Chopra and up to 54,348 Equity Shares by Rashmi Giria. The proceeds from the fresh issue to the extent augmentation of its capital base to meet its future capital requirements towards onward lending and general corporate purposes. The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Laxmi India Finance is a non-deposit-taking NBFC specializing in catering to the financial needs of underserved segments within India's lending market. The company's roots trace back to the early 1990s through Deepak Finance & Leasing Company (DFL), a proprietorship founded by the promoter's father. In 2010, our Promoter acquired the company's shares and control, followed by the integration of DFL's business and operations in 2011, combining the strengths and expertise of both entities. The NBFC offers a diverse product portfolio, including MSME loans, vehicle loans, construction loans, and other lending solutions, to address its customers' varied financial requirements. Over 80% of its MSME loans qualify as Priority Sector Lending under RBI guidelines, fostering economic development and financial inclusion by empowering small businesses and entrepreneurs.
As of June 30, 2024, Laxmi India Finance reported an AUM of Rs1,035.53 crore, with MSME and vehicle loans contributing 75.49% and 17.46%, respectively. Based in Jaipur, the company has adopted technology extensively across its operations, encompassing loan origination, underwriting, collections, post-disbursement monitoring, and customer service. The company serves a diverse customer base across various demographics, occupations, income levels, regions, and credit profiles. Notably, 38.19% of its customers are first-time borrowers, highlighting its commitment to financial inclusion. As of June 30, 2024, it had a customer base 26,065, including 15,732 active MSME clients and 6,146 active vehicle loan customers, reflecting a 78.92% increase from 14,568 customers on March 31, 2022. Laxmi India Finance maintains a diversified funding base, with access to 43 lenders, including 7 public sector banks, 10 private banks, 5 small finance banks, and 21 NBFCs and financial institutions as of June 30, 2024. Please Note: This note is prepared for your easy reference only and is not an official company statement or release.
As of September 30, 2024, its operational network encompassed 139 branches across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh. Among its peers, it holds the distinction of having the most branches in Rajasthan as of FY24, as per a CARE Report cited in the DRHP. The company has steadily grown its branch network, expanding from 93 branches in March 2022 to 119 in March 2023, and further to 135 by June 2024. Concurrently, its AUM surged from Rs 5,316.02 million in March 2022 to Rs10,355.35 million by June 2024, achieving a CAGR of 34.49%.
The MSME loan AUM grew at a CAGR of 30.73%, while vehicle financing AUM witnessed an impressive CAGR of 78.55% during the same period. PL Capital Markets Private Limited is the sole book-running lead manager and Link Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited
