Mufin Green Finance Raises Rs 30 Crore By Issuing 300 NCDs

Today, shares of Mufin Green Finance Ltd surged 1.77% to Rs 113.55 per share, up from the previous closing of Rs 115.60. The stock's 52-week high is Rs 273.10, while its 52-week low is Rs 35 per share.

Mufin Green Finance Ltd successfully raised Rs 30 crore by issuing 300 non-convertible debentures (NCDs) worth Rs 1 crore each to two investors, AAV Sarl and Masala Investment Sarl. These secured, redeemable NCDs carry an annual interest rate of 11.75%, payable semi-annually, and will mature in instalments between 2027 and 2031. The company has secured the debentures by hypothecating its book debts.

Mufin Green Finance is dedicated to addressing social and environmental issues in India by providing financial solutions, such as electric vehicle loans, to underserved communities. This focus on financial inclusion and sustainability aligns with their strong financial performance, boasting a market cap exceeding Rs 1,700 crore and an impressive 155% three-year compounded annual growth rate in profits. The stock has provided multibagger returns of 160% in just one year, compared to the 58% rise in the BSE Small-Cap Index.

In June, the company announced a significant rating upgrade by ACUITE, reflecting its improved financial health and creditworthiness. Mufin Green Finance's Book Loan Facilities for Rs 270 crore have been upgraded to 'ACUITE BBB+ | Stable,' signifying a positive long-term outlook. This upgrade is expected to lower borrowing costs and improve access to capital. Additionally, the company's proposed bonds for Rs 100 crore have also been upgraded to 'ACUITE BBB+ | Stable,' likely making these bonds more attractive to investors. This development indicates increased confidence in the company's ability to meet its financial obligations.

In May, Mufin Green Finance reported a 52% increase in net profit on a standalone basis, reaching Rs 4.05 crore in the fourth quarter of the financial year 2024. This growth in profit was driven by higher income. The company's net profit was Rs 2.66 crore in the same quarter of the financial year 2023. The company's EBITDA stood at Rs 23.46 crore in March 2024, up 189.99% from Rs 8.09 crore in March 2023. However, Mufin Green's EPS decreased to Rs 0.26 in March 2024 from Rs 0.53 in March 2023. Net sales were Rs 32.21 crore in March 2024, up 136.91% from Rs 13.60 crore in the same quarter of the previous financial year.

Mufin Green Finance provides financing solutions for India's EV ecosystem, offering loans for income generation through electric vehicles, electric charging infrastructure, and swappable batteries. To date, the company has disbursed more than Rs 350 crore towards electric vehicles.

Founded on principles of sustainability and financial inclusion, Mufin Green Finance continues to drive growth in India's electric vehicle sector. This latest fundraising effort and the company's robust financial performance highlight its ongoing commitment to addressing social and environmental challenges while delivering strong returns to its investors. With continued strategic initiatives and a focus on innovation, Mufin Green Finance is poised for further success in the rapidly evolving financial landscape.