My Mudra Fincorp Limited, established with the vision of transforming how individuals perceive and manage loans, has launched its ₹33.26 Crore IPO today, September 5, 2024. The IPO is set to close on September 9, 2024, and will list on the NSE SME on September 12, 2024. This Book Built Issue comprises a Fresh Issue of 30.24 Lakh Shares, priced between ₹104 and ₹110 per share.

IPO Details
Retail investors need to invest a minimum of ₹132,000 for a lot of 1,200 shares, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹264,000 for 2 lots (2,400 shares). The allotment is expected to be finalized on September 10, 2024, and shares will be listed on NSE SME.

Lead Managers and Registrar
HEM SECURITIES LIMITED is serving as the book-running lead manager, Skyline Financial Services Private Limited is the registrar, and Hem Finlease Private Limited is the sole Market Maker for the IPO.

Grey Market Premium (GMP)
The Grey Market Premium (GMP) for the My Mudra Fincorp IPO is anticipated to be in the range of ₹40 to ₹45. While the GMP provides a snapshot of market sentiment, it is crucial to understand that actual price discovery occurs post-listing. The GMP indicates potential listing gains of 38% to 41%, reflecting positive investor sentiment.

Live Subscription Status
As of 11:39 AM on September 6, 2024, the My Mudra Fincorp IPO has been subscribed 7.70 times on its second day. This high level of subscription is a strong indicator of investor interest and demand for the IPO. Investors can monitor the live subscription status on the NSE for up-to-date information.

IPO Allotment Status
The allotment date for the My Mudra IPO is September 10, 2024. Investors can check their allotment status by following these steps:

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

Select My Mudra Fincorp Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

Use of IPO Proceeds
The funds raised through the IPO will be utilized for several key purposes:

₹625.00 Lakhs will be allocated to repay a portion of existing borrowings, reducing debt and improving financial stability.

₹660.00 Lakhs will be invested in technology development and digital infrastructure, enhancing the company’s technological capabilities.

₹700.00 Lakhs will meet working capital requirements, supporting the company’s day-to-day operations and growth.

A portion of the funds will be used for general corporate purposes, providing flexibility for future opportunities.

Company Overview and Financials
Founded in 2019, My Mudra aims to shift perceptions of loans from a burden to a strategic financial decision. With a presence in every state, the company serves as a bridge between individuals and banks, offering personal, home, and business loans at competitive interest rates.

Promoters Vaibhav Kulshrestha and Nisha Kulshrestha, with over 14 years of combined experience in the financial services sector, drive the company’s vision and strategy. Their expertise has significantly contributed to the company’s growth and market presence.

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Financially, My Mudra has shown impressive growth. Revenue increased from ₹2,846.18 Lakhs in FY22 to ₹7,114.36 Lakhs in FY24, with EBITDA rising from ₹116.01 Lakhs in FY22 to ₹1,266.36 Lakhs in FY24. PAT also grew from ₹46.86 Lakhs in FY22 to ₹835.52 Lakhs in FY24.

The pre-issue EPS is ₹10.09, with a post-issue EPS of ₹7.33. The pre-issue P/E ratio is 10.90x, and the post-issue P/E ratio is 15.00x, compared to the industry P/E ratio of 16.15x. The company’s ROCE for FY24 is 45.98%, and ROE is 66.20%, indicating strong financial health and effective capital use.

IPO Valuation
Given the company’s strong financial performance and competitive pricing, the IPO appears to be fairly priced. The potential for listing gains coupled with solid financial metrics suggests it is an attractive opportunity for both short-term gains and long-term investment.

Investment Recommendation
We recommend investors to apply for the My Mudra Fincorp Limited IPO based on its strong financials, positive subscription status, and potential for significant listing gains. The company’s focus on technology and growth indicates a promising future in the financial services sector.

Stay updated by checking the My Mudra IPO Live Subscription Status and monitor the allotment status on the Registrar’s website after the IPO closes.

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