NBFC Stock In Green After Approving 2.55 Cr Warrants: Do You Own?

During Thursday's trading session, Mufin Green Finance Ltd.'s shares gained around 3.92% following the announcement by the company's board to issue convertible warrants. The NSE began the scrip at Rs 172.80 per share, but it quickly gained, hitting an intraday high of Rs 179.95, a 4% increase from the previous close of Rs 173.15.

The non-bank lender Mufin Green Finance announced that the 2.55 crore warrants that are convertible into equity shares have been authorised by the board of directors. An exchange filing states that this has enabled the company to raise a total of Rs 140.25 crore. The BSE Limited and the National Stock Exchange of India Ltd. granted the company its in-principle approvals prior to the decision being made.

"We wish to inform you that, the Committee of Directors ("For Preferential Issue") of the Mufin Green Finance Limited ("the Company") in their meeting held on today i.e. December 27, 2023 had approved the allotment of 2,55,00,000 Warrants convertible into Equity Shares of the Company, in one or more tranches, having face value of 1/- each, at a price of Rs. 55/- per Equity Share (including premium of Rs. 54/- each), aggregating to Rs. 1,40,25,00,000/- (towards 25% of the issue price paid by the allottees)," said Mufin Green Finance in a stock exchange filing.

Investors in the promoter and non-promoter categories have each received a warrant. Through the preferential offering, the Board allocated 20,00,0000 shares to non-promoters and 55,00,000 shares to promoters.

When considering the firm alone, its revenue from operations climbed to Rs 21.13 Cr in Q2FY24 from Rs 6.59 Cr in Q2FY3, a 220.63% growth. The firm said that its net profit for the period was Rs 40 Cr, which is 98% more than the Rs 20.20 Cr it earned in the same quarter last year. On a consolidated basis, Mufin Green Finance reported net revenue of Rs 21.13 Cr, which was 45.32% YoY lower than the Rs 38.65 Cr reported in the same quarter last year. The firm reported that during the under consideration quarter, its net profit was Rs 40 Cr, as opposed to Rs 7.45 Cr in Q2FY23.

Mufin Green Finance, a subsidiary of Hindon Mercantile Limited, is a leader in the nation's EV ecosystem.