Laxmi India Finance IPO shares GMP double before debut; will it deliver a listing pop

Shares of Laxmi India Finance are scheduled to begin trading on Dalal Street today, August 5. The IPO was open for subscription from July 29 to July 31, offering shares within a price band of Rs 150-158 per share, with a lot size of 94 shares.

The latest grey market premium (GMP) trends indicate a modest listing for Laxmi India Finance, with GMP doubling to Rs 3 per share from Rs 1.5 per share the previous day. This suggests a flat listing, offering just a 2% premium to investors, a drop from the earlier Rs 15-18 per share GMP before bidding commenced.

The company successfully raised Rs 254.26 crore, which includes Rs 165.17 crore from fresh issue and Rs 89.09 crore via an offer-for-sale. PL Capital Markets was the lead manager for this IPO, and MUFG Intime India acted as the registrar. The shares will be listed on both BSE and NSE.

The IPO was subscribed 1.84 times overall, drawing more than 1.15 lakh applications. The portion for qualified institutional buyers (QIBs) was subscribed 1.30 times, while non-institutional investors (NIIs) and retail investors subscribed 1.84 times and 2.22 times, respectively. Employee subscriptions reached 1.57 times.

Established in 1996, Laxmi India Finance is involved in providing MSME loans, vehicle loans, construction loans, and other financial products. The company primarily aids small businesses and entrepreneurs, with over 80% of its MSME loans classified as priority sector lending.

Brokerage firms have expressed mixed views on this IPO, reflecting the modest GMP and subscription levels. While some analysts see potential given the company's focus on MSME lending, others remain cautious due to the subdued listing expectations.