My Mudra Fincorp Limited is committed to creating a financially stable society by changing the perception of loans from a burden to a strategic financial decision. Established in 2019, the company has made significant strides in connecting individuals with banks for low-interest personal, home, and business loans. It operates across all Indian states, positioning itself as a key player in the financial services sector.

The company has launched an Initial Public Offering (IPO) with a Book Built Issue amounting to ₹33.26 crores. This IPO consists entirely of a Fresh Issue of 30.24 lakh shares. The subscription period for the IPO is from September 5, 2024, to September 9, 2024. The shares will be listed on the NSE SME with a tentative listing date of Thursday, September 12, 2024.

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

The book-running lead manager for the IPO is HEM Securities Limited, and Skyline Financial Services Private Limited is the registrar for the issue. Hem Finlease Private Limited serves as the sole Market Maker.

Live Subscription Status and Allotment

As of 06:13 PM on September 9, 2024, the My Mudra Fincorp IPO live subscription status indicates that the IPO was subscribed 95.27 times on its last day. This strong subscription rate reflects robust investor interest.

The IPO allotment date is set for Tuesday, September 10, 2024. Investors can check their allotment status through the registrar’s website by following these steps:

Visit the IPO allotment status page.

Select My Mudra Fincorp Limited IPO from the dropdown list of IPOs.

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

Submit the details to check your allotment status.

This process will allow investors to confirm their share allocation and make further investment decisions.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the My Mudra Fincorp IPO is anticipated to range between ₹40 and ₹45, suggesting potential listing gains of 38% to 41%. It’s crucial to note that GMP is speculative and based on unofficial trading, thus should be considered for informational purposes only. The final listing price will be determined by market conditions and investor demand.

Financial Performance

My Mudra Fincorp has demonstrated impressive financial growth since its inception. The company’s revenue increased from ₹2,846.18 lakhs in FY22 to ₹5,355.80 lakhs in FY23, and further to ₹7,114.36 lakhs in FY24, reflecting strong business expansion and market demand.

EBITDA has grown from ₹116.01 lakhs in FY22 to ₹568.40 lakhs in FY23, and ₹1,266.36 lakhs in FY24, indicating substantial improvement in operational efficiency and profitability.

The company’s Profit After Tax (PAT) also saw a notable increase, rising from ₹46.86 lakhs in FY22 to ₹346.75 lakhs in FY23, and ₹835.52 lakhs in FY24. This growth signifies a robust financial performance and effective management strategies.

For the My Mudra IPO, the company is offering shares at a pre-issue EPS of ₹10.09 and a post-issue EPS of ₹7.33. The pre-issue P/E ratio is 10.90x, while the post-issue P/E ratio is 15.00x, compared to the industry P/E ratio of 16.15x. These figures suggest that the IPO is attractively priced, providing good value relative to industry standards.

The company’s Return on Capital Employed (ROCE) for FY24 is an impressive 45.98%, and the Return on Equity (ROE) stands at 66.20%, highlighting My Mudra’s ability to generate strong returns on its investments and equity.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for the following purposes:

₹625.00 lakhs will be used for the repayment of a portion of existing borrowings, improving the company's financial stability.

₹660.00 lakhs will be invested in technology development and digital infrastructure, enhancing the company’s operational capabilities and service delivery.

₹700.00 lakhs will be allocated to meet working capital requirements, ensuring sufficient liquidity for ongoing operations.

The remaining funds will be used for general corporate purposes, providing the company with flexibility to support future growth and strategic initiatives.

My Mudra Fincorp IPO Review and Recommendation

My Mudra Fincorp Limited aims to transform how loans are perceived and utilized, bridging the gap between individuals and banks to facilitate easier access to financial services. The company benefits from the expertise of its promoters, Vaibhav Kulshrestha and Nisha Kulshrestha, who bring over 14 years of experience in the financial services sector. Their guidance has been pivotal in shaping the company’s growth and strategic direction.

The company’s strong financial performance, marked by significant revenue and profit growth, coupled with high ROCE and ROE, positions the IPO as a compelling investment opportunity. The attractive pricing and potential listing gains further enhance its appeal.

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