My Mudra Fincorp Limited aims to transform the perception of loans from a burden to a strategic financial decision. Established in 2019, My Mudra has successfully expanded its reach across all states, acting as a bridge between individuals and banks for personal, home, and business loans.

My Mudra Fincorp Limited IPO Overview

The Initial Public Offering (IPO) of My Mudra Fincorp Limited is a Book Built Issue valued at ₹33.26 crore, consisting solely of a Fresh Issue of 30.24 lakh shares. The subscription period starts on 05 September 2024 and closes on 09 September 2024. The shares are expected to be allotted on 10 September 2024 and will list on the NSE SME on 12 September 2024.

Price Band and Investment Details

The IPO’s price band is set at ₹104 to ₹110 per share, with a minimum lot size of 1,200 shares. Retail investors need to invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) must invest in at least 2 lots (2,400 shares), totaling ₹264,000.

Financial Performance of My Mudra

My Mudra has demonstrated impressive financial growth. The company’s revenue increased from ₹2,846.18 lakh in FY22 to ₹7,114.36 lakh in FY24, indicating robust growth. EBITDA surged from ₹116.01 lakh in FY22 to ₹1,266.36 lakh in FY24, reflecting significant operational improvements. The PAT also grew from ₹46.86 lakh in FY22 to ₹835.52 lakh in FY24, underscoring strong profitability.

Valuation Metrics

The IPO’s pre-issue EPS is ₹10.09 and the post-issue EPS is ₹7.33. The pre-issue P/E ratio is 10.90x, while the post-issue P/E ratio stands at 15.00x, compared to the industry P/E ratio of 16.15x. The company’s Return on Capital Employed (ROCE) for FY24 is 45.98%, and Return on Equity (ROE) is 66.20%, suggesting the IPO is fairly priced with strong returns.

Objectives of the IPO

The proceeds from the IPO’s Fresh Issue will be used for the following purposes:

₹625.00 lakh for repayment of a portion of outstanding borrowings.

₹660.00 lakh for investment in technology development and digital infrastructure.

₹700.00 lakh for meeting working capital requirements.

General corporate purposes.

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Grey Market Premium (GMP) and Expected Listing Gains

The Grey Market Premium (GMP) for My Mudra Fincorp is anticipated to be between ₹40 and ₹45, indicating potential listing gains of 38% to 41%. This suggests strong investor interest and potential profitability, though actual price discovery will occur upon listing.

How to Check My Mudra Fincorp IPO Allotment Status

To check the IPO allotment status after 10 September 2024:

Visit the IPO allotment status page on the registrar's website.

Select My Mudra Fincorp Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Should You Invest in My Mudra Fincorp Limited IPO?

With consistent financial growth, a strong management team, and an attractive valuation, My Mudra Fincorp Limited presents a compelling investment opportunity. The potential for short-term listing gains and long-term growth makes this IPO worth considering for both retail investors and HNIs. The company’s focus on technology and infrastructure development further enhances its growth prospects.

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