Laxmi India Finance successfully raised ₹100 crore through a private placement of secured, listed non-convertible debentures (NCDs). According to reports from Dalal Street Investment Journal, the Business Operation Committee approved the allotment of 1,00,000 rated, listed, unsubordinated, secured and redeemable NCDs at its meeting held on September 2, 2026. The issuance comprises two series: Series A with 70,000 debentures aggregating ₹70 crore and Series B with 30,000 debentures aggregating ₹30 crore. Both series have a face value of ₹10,000 per debenture and carry a coupon rate of 10.50% per annum with interest payments scheduled on a monthly basis.
The NCDs have a tenure of 36 months, with allotment completed on September 2, 2026, and maturity scheduled for September 2, 2029. As reported by Dalal Street Investment Journal, the securities will be listed on the wholesale debt market segment of BSE Limited. The newly issued NCDs are backed by a first and exclusive charge over identified receivables created through hypothecation in favour of the debenture trustee. The fund raise is equivalent to approximately 5.8% of the company's assets under management (AUM) of ₹1,721.74 crore as of June 2026 quarter, and around 6.7% of its total borrowings of ₹1,496.79 crore as of June 30, 2026.
Laxmi India Finance has been expanding its lending operations with a focus on MSME financing, as reported by Dalal Street Investment Journal. During the June quarter, the company's AUM increased 27.91% year-on-year, supported by disbursements of ₹232 crore. The MSME segment remained the largest contributor to the loan book with AUM of around ₹1,393.8 crore. The company operates 184 branches at the end of the June quarter and plans to add around 30-35 branches during FY2026-27, particularly in newer and underpenetrated markets. The company's cost of borrowing declined to 10.66% in the June quarter, improving by 67 basis points year-on-year.
According to Dalal Street Investment Journal, the company reported gross non-performing assets (GNPA) of 2.08% and net non-performing assets (NNPA) of 0.93% in the June quarter. The company stated that these figures were impacted by exposure to Upmoney, against which substantial provisions had already been created. The company's shares have declined 11.20% over the previous one year as of September 1, 2026. During the June quarter, banks, public-sector banks and small finance banks remained key contributors to the borrowing profile, while NCDs accounted for 3.49% of the overall funding mix.
