Laxmi India Finance Ltd IPO

Laxmi India Finance Limited was incorporated under the provisions of the Companies Act, 1956 as `Laxmi India Finleasecap Private Limited' pursuant to a certificate of incorporation dated May 10, 1996, issued by Registrar of Companies, Delhi and Haryana. The Company has been granted a certificate of registration dated March 28, 2001 under its former name `Laxmi India Finleasecap Private Limited' by the RBI to carry on the business of a non-banking financial company without accepting public deposits. The Company changed its registered office to the state of West Bengal pursuant to the order dated July 19, 2011 passed by the Hon'ble Company Law Board, Bench at New Delhi. Further, the registered office of the Company was shifted from the state of West Bengal to the state of Rajasthan pursuant to the order dated December 01, 2020 passed by the Regional Director, Eastern Region. Subsequently, a certificate of registration dated April 25, 2018 was granted by the RBI pursuant to shifting of the registered office of the Company to the state of West Bengal from Delhi. Pursuant to shifting of registered office of the Company to the state of Rajasthan, the RBI had granted a certificate of registration dated March 15, 2021. Thereafter, the name of the Company was changed to Laxmi India Finance Private Limited to align it with our business activities pursuant to a resolution passed by its Shareholders dated January 25, 2023 and a fresh certificate of incorporation was issued by the RoC on March 10, 2023. Consequently, the RBI had granted a certificate of registration dated March 31, 2023, to the Company. The Company was converted into a public limited company and the name of our Company was changed to `Laxmi India Finance Limited' pursuant to a special resolution passed by its Shareholders dated August 9, 2024 and a fresh certificate of incorporation issued by the RoC on October 08, 2024. The RBI has granted a certificate of registration dated February 7, 2025 to the Company consequent to conversion of the Company from private limited company to a public limited company.

We operate in the credit market as a non-banking financial company (NBFC). The total systemic credit in India has witnessed a steady and broad-based expansion over recent years. From Rs 134.5 trillion in FY19, credit outstanding is expected to have crossed Rs 236 trillion as of FY25 By FY27, systemic credit is projected to reach around to ~Rs 300 trillion, indicating a healthy CAGR of 12%-13% between FY25 - FY27. The share of NBFCs in systemic credit has steadily increased from 17% in FY19 to 19% in FY24 and is projected to reach 20% by FY27. This trend reflects the growing contribution of NBFCs in the Indian credit landscape, particularly in addressing credit demand in under-served segments such as microfinance, small and medium enterprises and loans to priority sectors. Commercial credit to MSMEs in India grew at a steady pace of 11% CAGR in the 4-year period from Sep-19 to Sep-23. CareEdge Research expects NBFC MSME AUM to grow at a CAGR of approx. 20% to 22% and cross Rs. 6 trillion mark by end of FY27.

The Company is a non-deposit taking non-banking financial company categorized as a `NBFC-Middle Layer' primarily operating in Micro, Small and Medium Enterprises (MSME) financing vertical and vehicle financing vertical. It offers MSME loans, vehicle loans, construction loans and other lending products to cater to the financial needs of its customers. As on March 31, 2025, the company conducts its operations through 158 branches located in rural, semi-urban and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh. As of March 31, 2025, its assets under management (AUM) stood at Rs.12,770.18 million with its MSME and vehicle loan verticals contributing 76.34% and 16.12%, respectively. Further, the customer base comprises 35,568 customers, including 18,596 active MSME customers and 12,423 active vehicle loan customers as on March 31, 2025.