Laxmi India Finance Share Price Falls on NSE Listing: What Investors Should Know

Laxmi India Finance shares debuted at a discount on NSE SME. Investors are closely monitoring the stock post its IPO listing and future projections.

The Laxmi India Finance share price made its much-anticipated debut on the NSE SME platform, drawing attention from investors and market analysts alike. Listed at a 13% discount to its IPO price, this Rajasthan-based NBFC (Non-Banking Financial Company) has opened a wider conversation about the state of SME IPOs in India.

In this in-depth blog, we will explore the IPO journey, post-listing trends, investor sentiment, financial fundamentals, and what this listing means for retail investors.

Laxmi India Finance IPO – An Overview

Laxmi India Finleasecap Limited (LIFC) launched its IPO to raise ₹48 crore by offering 61.88 lakh equity shares at a fixed price of ₹123 per share.

Key IPO Details:

Issue Size: ₹48 crore
Price per Share: ₹123
Lot Size: 1000 shares
Listing Platform: NSE SME
IPO Opened On: July 19, 2025
IPO Closed On: July 23, 2025

Despite aggressive marketing and strong fundamentals in NBFC lending, the response remained lukewarm, which later reflected in its discounted listing.

Listing Day Performance – Below Expectations

The Laxmi India Finance IPO made a muted market debut with the share listing at ₹107.20, a 13% discount from its issue price of ₹123.

Market Reaction:

Listing Price: ₹107.20
IPO Price: ₹123
Discount: ~₹16 (13%)
Market Cap Post Listing: ₹173 crore (approx.)

Despite being part of a booming NBFC sector, the subdued response highlighted concerns over valuations and the narrow interest from institutional investors.

Why Did Laxmi India Finance Share Price Fall?

Several reasons contributed to the weak debut:

1. High IPO Valuation

The pricing of ₹123 per share was considered slightly expensive for an SME NBFC with moderate asset size and ROA.

2. Market Volatility

With recent global economic jitters, retail and HNI investors became cautious, impacting oversubscription.

3. Limited Brand Awareness

Laxmi India Finance, being a regional player, lacks the national brand equity that many retail investors prefer.

Financial Snapshot of Laxmi India Finance

Parameter	FY2024
Net Profit	₹9.7 crore
Revenue	₹58.4 crore
Net Worth	₹94.6 crore
Assets Under Management	₹456 crore
ROE (Return on Equity)	10.3%
GNPA (Gross NPA)	1.21%

The company’s consistent profit growth and healthy AUM have been its strengths, though scalability remains a concern.

What Should Investors Do Now?

Investors who entered at the IPO price may want to adopt a wait-and-watch approach. Here’s what to consider:

Short-Term Outlook: Volatility expected due to listing discount and overall SME market trends.
Long-Term Potential: Moderate, depending on future expansion beyond Rajasthan and into fintech.
Peer Benchmarking: Compared to other SME NBFCs, its valuation still looks slightly aggressive.

Expert Opinion & Market Buzz

The Laxmi India Finance IPO could stabilize over time if the company maintains healthy asset quality and expands its lending base.

Analysts warn that retail investors in SME IPOs should understand that such platforms are high-risk, high-reward zones and due diligence is essential.

Conclusion

The Laxmi India Finance share price debut might not have impressed the market, but its financial track record and regional presence still hold merit. As India’s SME lending space grows, NBFCs like LIFC can still carve out a niche — if they focus on digital lending and wider customer outreach.