Preferential issue: Mufin Green Finance raises about Rs 324 crore via shares and warrants

Mufin Green Finance has raised about Rs 324 crore through a preferential issue of equity shares and warrants. The company said the funds came in as cash consideration. The move increased the company’s equity base and added resources for lending. It also drew interest from institutional investors, non-promoter high-net-worth individuals, and promoter-linked entities.

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According to the company, it allotted 2,49,30,765 fully paid-up equity shares of face value Rs 1 each. The issue price was Rs 98 per share, including a premium of Rs 97. It also issued 76,53,061 warrants priced at Rs 98 each. These warrants can convert into equity later, subject to rules.

Mufin Green Finance preferential issue draws investor mix

The preferential issue saw participation across different investor categories, the company said in a release. These included institutional investors and non-promoter high-net-worth individuals. Promoter entities also participated, with the promoter group, Hindon Mercantile, subscribing to the warrants. The company said it closed the equity fund round with SageOne, Sandeep Kapadia, DS group and MMG family office.

Mufin Green Finance capital rise changes share base

After the allotment, the paid-up equity share capital rose to Rs 19.82 crore. Earlier, it stood at Rs 17.32 crore. The equity share count moved up from 17,32,31,423 shares to 19,81,62,188 shares. The company said the equity shares were fully paid-up and carried a face value of Rs 1 each.

Mufin Green Finance plans to use funds for impact financing

Mufin Green Finance said the fresh capital strengthens the balance sheet and raises lending capacity. The company linked the funds to growth plans in impact financing solutions. These focus areas include insurance premium financing and salary advance to government employees. The company also cited other tech first financing solutions as part of its operating focus.

Mufin Green Finance outlook includes profit after tax expectation

"This fresh capital will fuel our expansion plans and position us to capitalise on the growing demand for our products. With our robust business momentum, we expect quarter-on-quarter profit after tax to double in the coming periods, driven by higher disbursements, improved operational efficiency, and favorable market trends in sustainable lending,\" said Kapil Garg, Managing Director of Mufin Green Finance.

Mufin Green Finance operates in sustainable and impact-focused financing solutions, the company said. The preferential issue combined equity shares and warrants, with warrants carrying future conversion rights under regulations. The company has positioned the capital raise as support for lending growth. It also tied the fund infusion to its product segments and operating plans.

With inputs from PTI