My Mudra Fincorp IPO: Review, Valuation, Date & GMP

My Mudra Fincorp IPO-Complete Overview

My Mudra Fincorp IPO an SME IPO is a book-built issue of Rs.33.26 crore by My Mudra Fincorp Ltd. originally founded as My Mudra Fincorp Private Limited and serves as a Channel Partner (DSA) for significant Indian banks and NBFCs since its incorporation in 2013.

Mudra Finance Pvt Ltd. also referred to as My Mudra focuses on offering a large selection of financial items for sale and distribution. As a channel partner, the company provides credit cards, unsecured loans (such as business and personal), professional loans, and secured loans (such as house and property loans) to clients who are recommended. 

Additionally, My Mudra Fincorp now offers insurance product sales as one of its expanding services. Customers of the firm include corporations, private citizens, and professionals like chartered accountants (CAs) and company secretaries (CSs).

This new SME IPO is to be launched on 05 September 2024, and its ‘initial public offering’ will end on 09 September 2024.

 

My Mudra Fincorp IPO Overview

The Rs.33.26 crore Mudra Fincorp Pvt Ltd. IPO consists of a wholly fresh issue of 30.24 lac Shares amounting to Rs.33.26 crore.

This SME IPO  date is from September 05-September 09, 2024. The expected IPO listing date is Thursday, September 12, 2024, on NSE and SME. My Mudra Fincorp IPO price band is Rs.104 to Rs.110 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company’s revenue grew by 33% and PAT increased by 141% for FYs between 31 March 2024 and 31 March 2023. Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.3,027.82 lac.

• The total revenue of the company is Rs.7,114.36 lac.

• The company’s PAT is Rs.835.52 lac.

• The net worth of the company is Rs.1,679.79 lac.

• The company’s EBITDA is Rs.1266.36 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Service-wise Revenue Breakdown of Sales During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital needs

• Repayment of a portion of a loan that the company took out

• Investing in digital infrastructure and technological development

• General corporate purposes.

 

Peers of My Mudra Fincorp Ltd. 

Note: The above comparison of listed peers is as per data by FY 2023.

 

Evaluation

My Mudra Fincorp Share Price is Rs.104 to Rs.110 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.10.09 from the last year, the resulting P/E ratio is 10.90x.

Considering the weighted EPS of Rs.6.55 for the last three years, the P/E ratio is 16.79x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 16.15x.

In simple words, the P/E ratio of My Mudra Fincorp IPO (10.90x) compared with the industry’s average P/E of 16.15x, has undervaluation. Hence the price seems fairly priced based on the average P/E ratio of the industry.

Note: The P/E Ratio of the listed peer is as of August 23, 2024.

 

IPO's Strengths 

• A robust portfolio with a wide variety of loan products to suit different consumer preferences

• Strategic partnerships with banks and NBFCs

• Diversified revenue from various locations and regions of India

• Capital-efficient strategy with minimal operating expenses

• Experienced leadership and management.

 

IPO’s Weaknesses

• Business partnerships with banks and NBFCs are critical to its operations. The company has contracts in place with significant banks and non-bank financial companies (NBFCs). The cancellation of these agreements would harm its operations, financial situation, company, and prospects.

• Its banking partners and financial institutions provide a significant amount of revenue. The RBI oversees its banking partners and financial institutions, and any modifications to its rules, regulations, or other aspects of its operations could harm the company.

• The business depends on its technical infrastructure and web platform operating properly. Any interruption to its infrastructure and IT systems could have a significant impact on its capacity to keep its platform operating at a high level and provide reliable services to customers

• The company's operations and reputation may be impacted by major interruptions to its IT systems or security breaches.

 

My Mudra Fincorp IPO GMP Today

My Mudra Fincorp IPO GMP is Rs.0 as of 03 September 2024.

 

 

IPO Timetable (Tentative)

The IPO date is from September 05 to September 09, 2024, with allotment on September 10, refund initiation on September 11, and listing on September 12, 2024.

My Mudra Fincorp IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 05, 2024, close on September 09, 2024, and offer a total issue size of 30,24,000 Shares (aggregating up to Rs.33.26 Cr.).

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,32,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,64,000.

 

My Mudra Fincorp IPO Reservation

Promoters And Management of My Mudra Fincorp Ltd.

• Vaibhav Kulshrestha

• Nisha Kulshrestha

IPO Lead Managers

• Hem Securities Limited.

 

Dividend Policy

The company has not paid dividends in the last 3 FYs.

 

Conclusion

The company has experienced negative cash flow in operating and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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