My Mudra Fincorp Limited is a visionary company founded with the ambition to foster financial stability and transform perceptions about loans. Established in 2019, My Mudra aims to shift the mindset from viewing loans as burdens to recognizing them as strategic, planned decisions. The company has rapidly expanded its reach, making its mark in every state across India. My Mudra serves as a crucial bridge between individuals and banks, facilitating personal, home, and business loans at favorable interest rates.

The My Mudra Fincorp Limited IPO is scheduled to open on September 05, 2024, with a price band set between ₹104 and ₹110 per share. The IPO consists entirely of a fresh issue of 30.24 lakh shares, amounting to a total issue size of ₹33.26 crores. Retail investors are required to invest a minimum of ₹132,000 for a lot size of 1,200 shares, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹264,000 for 2 lots (2,400 shares). The subscription period will close on September 09, 2024, with allotment scheduled for September 10, 2024, and shares are expected to list on the NSE SME on September 12, 2024.

The funds raised from the IPO will be utilized as follows:

₹6.25 crores for the repayment of a portion of outstanding borrowings.

₹6.60 crores for investment in technology development and digital infrastructure.

₹7.00 crores to meet working capital requirements.

The remaining funds will be used for general corporate purposes.

Financial Performance:

My Mudra has demonstrated significant growth since its inception. Revenue surged from ₹2,846.18 lakhs in FY22 to ₹5,355.80 lakhs in FY23, reaching ₹7,114.36 lakhs in FY24. EBITDA also saw a remarkable increase, from ₹116.01 lakhs in FY22 to ₹1,266.36 lakhs in FY24. Profit After Tax (PAT) rose from ₹46.86 lakhs in FY22 to ₹835.52 lakhs in FY24, reflecting strong financial performance.

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For the IPO, My Mudra is offering shares at a pre-issue Earnings Per Share (EPS) of ₹10.09 and a post-issue EPS of ₹7.33. The pre-issue Price-to-Earnings (P/E) ratio is 10.90x, and the post-issue P/E ratio is 15.00x, compared to the industry average of 16.15x. The company’s Return on Capital Employed (ROCE) for FY24 stands at 45.98%, and the Return on Equity (ROE) is 66.20%, suggesting that the IPO is reasonably priced and aligns well with industry benchmarks.

The Grey Market Premium (GMP) for the My Mudra IPO is anticipated to range between ₹40 and ₹45, indicating potential listing gains of 38% - 41%. While the GMP provides an indication of market sentiment, it is not a definitive measure of the IPO's performance. Actual trading values may vary upon listing.

Investors interested in the My Mudra IPO should monitor the subscription status starting September 05, 2024, and verify their allotment status on September 10, 2024. The IPO proceeds are expected to bolster the company's growth strategy and enhance its technological and operational capabilities.

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