What You Must Know About My Mudra Fincorp IPO: Price Band ₹104 to ₹110 Per Share

Incorporated in 2013, My Mudra Fincorp Limited operates as a Channel Partner (DSA) for major banks and NBFCs in India. The company specialises in distributing and selling a wide range of financial products. As a channel partner, My Mudra Fincorp offers various financial products, including:

• Secured loans: Home and property loans
• Unsecured loans: Business and personal loans
• Professional loans
• Credit cards
• Insurance products

My Mudra Fincorp caters to a diverse clientele, including private individuals, businesses, and professionals such as chartered accountants (CAs) and company secretaries (CSs). This broad customer base allows the company to tap into various financial services market segments.

As of 31st May 2024, My Mudra Fincorp employed 143 people, including 10 employees dedicated to IT and CRM development. This substantial workforce indicates the company's commitment to maintaining a strong operational structure and investing in technological capabilities.

The Objective of the Issue

1. Repayment of Borrowings: A portion of the IPO proceeds will be used to repay certain borrowings availed by the Company, which should improve its financial position.
2. Investment in Technology: The company plans to invest in technology development and digital infrastructure, enhancing its operational efficiency and service delivery.
3. Meeting Working Capital Requirements: Funds will be allocated to support the company's increasing working capital needs as it expands operations.
4. General Corporate Purpose: A portion of the funds will be used for various corporate activities that align with the company's strategic goals.

Highlights of My Mudra Fincorp IPO

My Mudra Fincorp IPO is set to launch with a book-built issue of ₹33.26 crores. The issue comprises entirely of a fresh issue of 30.24 lakh shares. Here are the key details of the IPO:

• The IPO opens for subscription on 5th September 2024 and closes on 9th September 2024.
• The allotment is expected to be finalized on 10th September 2024.
• Refunds will be initiated on 11th September 2024.
• Credit of shares to Demat accounts is also expected on 11th September 2024.
• The company will tentatively list on NSE SME on 12th September 2024.
• The price band is set at ₹104 to ₹110 per share.
• The lowest lot size for the IPO application is 1200 shares.
• Retail investors need to invest a minimum of ₹132,000.
• The minimum investment for HNI is 2 lots (2,400 shares), amounting to ₹264,000.
• Hem Securities Limited is the book-running lead manager for the IPO.
• Skyline Financial Services Private Ltd serves as the registrar.
• Hem Finlease is the market maker.

My Mudra Fincorp IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 9th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. It's important to note that all UPI mandates will only be accepted until this cut-off time on the IPO closure day, as per exchange guidelines. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

My Mudra Fincorp IPO Issue Details/Capital History

My Mudra Fincorp IPO is scheduled from 5th September to 9th September 2024, with a price band of ₹104 to ₹110 per share and a face value of ₹10. The lot size is 1,200 shares, and the total issue size is 3,024,000, raising ₹33.26 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 8,367,800 pre-issue to 11,391,883 post-issue. Hem Finlease is the market maker responsible for 153,600 shares within the issue.

My Mudra Fincorp IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for at least 1,200 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and high-net-worth individuals (HNI), expressed in shares and monetary values.

SWOT Analysis: My Mudra Fincorp Limited

Strengths:

• An established player in the financial services sector with over a decade of experience
• Diverse product portfolio catering to various financial needs
• Strong partnerships with major banks and NBFCs
• The substantial workforce of 143 employees, including a dedicated IT and CRM development team

Weaknesses:

• Dependency on partner banks and NBFCs for product offerings
• Potential vulnerability to changes in financial regulations
• Limited geographical presence (information not provided about operational areas)

Opportunities:

• Growing demand for financial products in India
• Potential for expansion into new geographical markets
• Scope for introducing innovative financial products
• Increasing digitization of financial services

Threats:

• Intense competition in the financial services sector
• Economic downturns affecting lending and borrowing patterns
• Regulatory changes impacting the operations of DSAs
• Cybersecurity risks associated with handling sensitive financial data

Financial Highlights: My Mudra Fincorp Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

DRHP

My Mudra Fincorp Limited's financial performance over the fiscal years ending March 2022, 2023, and 2024 demonstrates a remarkable trajectory of growth.

The company's assets have shown significant growth, increasing from ₹939.6 lakhs in FY22 to ₹3,027.82 lakhs in FY24, representing a growth of about 222% over two years. This substantial asset growth indicates significant investments in the company's operational capabilities and infrastructure.

Revenue has seen an impressive increase, rising from ₹2,838.25 lakhs in FY22 to ₹7,107.24 lakhs in FY24, marking a growth of about 150%. This strong revenue growth demonstrates the company's ability to expand its market presence and increase its service offerings.

The profit after tax (PAT) figures underscore the company's dramatically improving profitability. The PAT rose from ₹46.86 lakhs in FY22 to ₹835.52 lakhs in FY24, representing an extraordinary growth of about 1,683% over two years. This sharp rise in profits indicates the company's successful execution of its business strategies and ability to manage costs effectively while growing revenues.

The company's net worth has also grown substantially, rising from ₹437.88 lakhs in FY22 to ₹1,679.79 lakhs in FY24, a growth of about 284%. This significant increase in net worth reflects the company's ability to generate and retain earnings.

Total borrowings increased from ₹341.2 lakhs in FY22 to ₹964.41 lakhs in FY24. While this represents a significant increase, it should be viewed in the context of the company's growth in total income and assets.

These financial metrics collectively paint a picture of a company in a high-growth phase, successfully scaling its operations and dramatically improving its profitability. The consistent growth across all key financial parameters suggests that My Mudra Fincorp Limited has effectively executed its business plan and capitalised on the growing demand for financial services in India.