My Mudra Fincorp Limited, established in 2019, aims to create a financially stable society by shifting the perception of loans from burdensome obligations to planned financial decisions. The company serves as a bridge between customers and banks, helping people access personal loans, home loans, and business loans at competitive interest rates. Since its inception, My Mudra has expanded its footprint across all Indian states, building a reputation as a reliable partner in financial services.

My Mudra Fincorp IPO Overview:

The My Mudra Fincorp Limited IPO is a Book Built Issue valued at ₹33.26 crores, consisting solely of a Fresh Issue of 30.24 lakh shares. The IPO will be open for subscription from September 05, 2024, to September 09, 2024. The price band has been set at ₹104 to ₹110 per equity share, and the minimum lot size is 1,200 shares. This means retail investors will need to invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) are required to invest in a minimum of two lots, amounting to ₹264,000.

The IPO allotment is expected to be finalized on September 10, 2024, with shares expected to be listed on the NSE SME exchange on September 12, 2024. HEM Securities Limited is the book-running lead manager, while Skyline Financial Services Private Limited acts as the registrar. Hem Finlease Private Limited is the sole Market Maker for the issue.

Grey Market Premium (GMP) Analysis:

The Grey Market Premium (GMP) for My Mudra Fincorp Limited IPO is expected to range between ₹40 to ₹45, suggesting potential listing gains of 38%-41%. While the GMP reflects market sentiment in the unofficial grey market, it should be considered cautiously, as no real trading is done on this basis. The final price discovery will occur post-listing, and the GMP can fluctuate based on demand and supply dynamics. It is important to remember that the GMP is primarily used for informational purposes and should not be the sole basis for investment decisions.

Live Subscription Status:

As of 11:39 AM on September 06, 2024, the My Mudra Fincorp Limited IPO had been subscribed 7.70 times on the second day of its subscription period. This high level of interest from investors across different categories is an indication of the strong demand for the IPO. Investors can keep track of the live subscription status on the NSE SME platform to better understand the level of demand as the subscription period progresses.

Financial Performance:

My Mudra Fincorp has exhibited strong financial growth over the past few years. The company’s revenue increased from ₹2,846.18 Lakhs in FY22 to ₹5,355.80 Lakhs in FY23, and further rose to ₹7,114.36 Lakhs in FY24. This substantial growth highlights the company’s ability to expand its customer base and financial service offerings across various states.

Moreover, the company’s EBITDA has surged from ₹116.01 Lakhs in FY22 to ₹568.40 Lakhs in FY23, reaching ₹1,266.36 Lakhs in FY24, indicating improved profitability and operational efficiency. The Profit After Tax (PAT) also saw significant growth, rising from ₹46.86 Lakhs in FY22 to ₹346.75 Lakhs in FY23, and currently standing at ₹835.52 Lakhs in FY24. These figures demonstrate the company’s steady financial performance and position as a growing player in the financial services sector.

The pre-issue Earnings Per Share (EPS) is ₹10.09, while the post-issue EPS is expected to be ₹7.33. With a pre-issue Price-to-Earnings (P/E) ratio of 10.90x and a post-issue P/E ratio of 15.00x, the IPO appears to be reasonably priced, especially when compared to the industry P/E ratio of 16.15x. Additionally, the company’s Return on Capital Employed (ROCE) is 45.98%, and its Return on Equity (ROE) is 66.20% for FY24, reflecting effective capital and equity management.

IPO Allotment and Listing Information:

The My Mudra Fincorp IPO allotment is expected to be finalized on September 10, 2024. Investors can check their allotment status by visiting the registrar’s website. Here’s how you can verify your allotment:

Visit the IPO allotment status page on the Skyline Financial Services Private Limited 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.

Once the allotment is confirmed, shares are expected to be listed on the NSE SME exchange on September 12, 2024.

Objectives of the My Mudra Fincorp IPO:

The proceeds from the Fresh Issue will be allocated towards the following objectives:

₹625 Lakhs will be used for repayment of certain borrowings.

₹660 Lakhs will be invested in technology development and digital infrastructure to improve service efficiency.

₹700 Lakhs will be allocated to meet working capital requirements.

The remaining amount will be utilized for general corporate purposes.

IPO Review and Investment Recommendation:

Since its establishment in 2019, My Mudra Fincorp has demonstrated a clear mission to help individuals access financial services easily and efficiently. The company has successfully positioned itself as a bridge between borrowers and banks, facilitating loans at competitive interest rates for personal, home, and business needs.

The promoters of My Mudra, Vaibhav Kulshrestha and Nisha Kulshrestha, have 14 years of experience in the financial services sector, providing valuable leadership and insight for the company’s growth strategies. Their expertise in business development, marketing, and corporate planning has been instrumental in the company’s expansion and overall success.

Given the company’s strong financial performance, combined with favorable valuation metrics and a promising Grey Market Premium (GMP), the My Mudra Fincorp IPO appears to be an attractive option for both short-term listing gains and long-term investment. Investors who are looking for a growth-oriented financial company should consider applying to this IPO.

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