Jaipur-based NBFC Laxmi India Finance files DRHP with SEBI for IPO

Laxmi India Finance Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Laxmi India Finance is a non-banking financial institution located in Jaipur, focusing on meeting the financial requirements of underserved groups in India's lending sector. The company’s origins can be traced back to the early 1990s with Deepak Finance & Leasing Company (DFL), a sole proprietorship established by the founder's father. In 2010, the company's shares and control were acquired by our Promoter, leading to the integration of DFL's business and operations in 2011, which combined the capabilities and expertise of both organisations.

Laxmi India Finance provides a wide range of products, including loans for MSMEs, vehicles, construction, and other financing solutions, to meet the diverse financial needs of its clients. More than 80% of the MSME loans it offers meet the criteria for Priority Sector Lending as outlined by RBI regulations, promoting economic growth and financial inclusion by supporting small businesses and entrepreneurs.

As of June 30, 2024, Laxmi India Finance announced an AUM of ₹1,035.53 crore, with MSME loans and vehicle loans making up 75.49% and 17.46% of the total, respectively.

IPO details

The initial public offering (IPO) has a face value of ₹5 and comprises a fresh issuance of shares totaling 1,04,53,575 along with an offer for sale consisting of up to 56,38,620 equity shares from Promoter and Promoter Group Selling Shareholders. Additionally, the offer includes a reserved allocation for eligible employees to subscribe, featuring a discount for those participating in the employee reservation segment.

The offer for sale encompasses shareholders who will sell shares, including 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, as well as up to 54,348 equity shares each by Preeti Chopra and Rashmi Giria.

The funds raised from the new issue will enhance the company's capital base to fulfill future capital needs for lending and general corporate activities.

The offering is being conducted through a book-building method, where a maximum of 50% of the net offering is designated for qualified institutional buyers, while a minimum of 15% and 35% of the net offering is reserved for non-institutional and retail individual bidders, respectively.

PL Capital Markets Private Limited serves as the exclusive book-running lead manager, and Link Intime India Private Limited is assigned as the issue's registrar.

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