The initial public offering (IPO) of My Mudra Fincorp, which opened today, received a great response from investors, with the IPO being subscribed 5.77 times. Retail investors showed high interest, as their portion was subscribed 5.95 times.
Non-institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) also showed strong support, with subscription rates of 3.58 and 7 times respectively, as of 6:00 p.m., according to data from Chittorgarh.com.
My Mudra Fincorp aims to raise ₹33.26 crore through the IPO. The entire issue consists of 30.24 lakh fresh shares. The price range for the offer is between ₹104 and ₹110 per share, with a face value of ₹10 each. Investors can purchase a lot of 1200 shares, requiring a minimum investment of ₹1,32,000 for retail participants.
Key Dates and Managers
The allotment of shares is expected to be finalized on Tuesday, September 10, 2024, and the shares will likely be listed on the NSE SME platform on Thursday, September 12, 2024. Hem Securities Limited is acting as the lead manager for the IPO, while Skyline Financial Services Private Ltd is the registrar. Hem Finlease is the market maker for the IPO.
Use of IPO Funds
The company plans to use the funds raised to repay part of its existing loans, invest in technology development and digital infrastructure, support its working capital needs, and cover general corporate expenses.
About My Mudra Fincorp
Founded in 2013, My Mudra Fincorp operates as a channel partner for well-known banks and non-banking financial companies (NBFCs) in India. The company uses a mix of telemarketing, advertising, direct marketing, referrals, and a combination of physical and digital (“physital”) strategies to attract customers for these financial institutions.
As a channel partner, the company offers various financial products such as secured loans (home loans, loans against property), unsecured loans (personal, business, and professional loans), and credit cards. Recently, they have also started offering insurance products.
Customers can compare different loan and insurance options from the company’s partners, allowing them to make better decisions. My Mudra Fincorp presents multiple options, clearly explaining the costs and features, helping customers choose the right product. Once the loan is approved, it is easily sanctioned by the lending institutions.
Revenue Model
The company earns commissions from its business activities. In the loan segment, commissions come from the lending partners, while the credit card business generates fees from issuers. My Mudra Fincorp also earns commissions from insurance partnerships, as per their Draft Red Herring Prospectus (DRHP).
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