Laxmi India Finance files draft papers with Sebi to raise funds via IPO

NBFC player Laxmi India Finance Ltd has filed draft papers with markets regulator Sebi to raise funds through an Initial Public Offering (IPO).

The Jaipur-based company's proposed IPO is a combination of a fresh issue of 1.04 crore shares and an offer for sale (OFS) of 56.38 lakh shares by promoters, according to the draft red herring prospectus (DRHP).

As per the draft papers filed last week, proceeds from the fresh would be used to shore up its capital base to meet future capital requirements towards onward lending and for general corporate purposes.

Laxmi India Finance, a non-deposit-taking NBFC, offers a diverse product portfolio, including MSME loans, vehicle loans, construction loans, and other lending solutions to customers.

As of June 2024, the NBFC had an asset under management (AUM) of Rs 1,035.53 crore, with MSME and vehicle loans contributing 75.49 per cent and 17.46 per cent respectively.

Its operational network encompassed 139 branches across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgarh as of September 30, 2024.

Further, the company has grown its branch network from 93 branches in March 2022 to 119 in March 2023, and further to 135 by June 2024.

PL Capital Markets is the sole book-running lead manager to the issue.