My Mudra Fincorp Limited is set to make a noteworthy debut on the stock market with its upcoming IPO. Established in 2019, the company aims to transform the perception of loans from a financial burden to a strategic decision. Known for facilitating personal, home, and business loans, My Mudra acts as a crucial intermediary between individuals and banks, leveraging its position to offer competitive low-interest rates.

The My Mudra IPO is a Book Built Issue amounting to ₹33.26 Crores, consisting solely of a Fresh Issue of 30.24 lakh shares. The subscription period for this IPO will be from September 05 to September 09, 2024, with the allotment expected around Tuesday, September 10, 2024. Shares will be listed on the NSE SME with a tentative listing date of Thursday, September 12, 2024.

The share price band for the IPO is set between ₹104 and ₹110 per equity share. Retail investors are required to invest a minimum of ₹132,000, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹264,000 for 2 lots (2,400 shares). HEM SECURITIES LIMITED is 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.

My Mudra benefits from the experience and 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 instrumental in shaping the company's strategic vision and growth.

Financial Performance

The company has demonstrated significant financial growth. My Mudra's revenue increased from ₹2,846.18 Lakhs in FY22 to ₹7,114.36 Lakhs in FY24. EBITDA improved from ₹116.01 Lakhs in FY22 to ₹1,266.36 Lakhs in FY24, showcasing enhanced operational efficiency. The Profit After Tax (PAT) also rose from ₹46.86 Lakhs in FY22 to ₹835.52 Lakhs in FY24, indicating robust profitability.

For the IPO, My Mudra is issuing shares with 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. The company’s Return on Capital Employed (ROCE) for FY24 stands at 45.98%, and the Return on Equity (ROE) is 66.20%, suggesting a favorable valuation for the IPO.

Objectives and Investment Potential

The proceeds from the My Mudra IPO will be allocated towards:

₹625.00 Lakhs for the repayment of certain borrowings.

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

₹700.00 Lakhs to meet working capital requirements.

General Corporate Purposes.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the My Mudra IPO is anticipated to range from ₹40 to ₹45, suggesting potential listing gains of 38% to 41%. However, GMP is based on informal trading and should be considered for informational purposes only.

Allotment Status

Investors can check the My Mudra IPO allotment status on September 10, 2024. To check:

Navigate to the IPO allotment status page.

Select My Mudra Fincorp Limited IPO from the dropdown list.

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

Submit the details to check your allotment status.

This allows investors to determine their allotment status quickly and proceed with their investment decisions.

Conclusion

My Mudra Fincorp Limited offers a promising investment opportunity due to its significant financial growth, experienced management team, and reasonable IPO valuation. The company's commitment to transforming the financial landscape and its robust performance metrics make it a compelling choice for both listing gains and long-term investments.

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