My Mudra Fincorp IPO subscribed 102 times on Day 03; NII portion booked over 159 times

The initial public offering (IPO) of My Mudra Fincorp continued to receive healthy response from investors on the final day of bidding, with the IPO being subscribed to 102.48 times. NII showed particularly high interest, as their portion was subscribed to 159.37 times.

The retail portion and QIB was also well-received, with a subscription rates of 109 and 48.83 times as of 5:30 p.m. today, according to Chittorgarh.com.

My Mudra Fincorp aims to raise ₹33.26 crore through the IPO, issue is entirely a fresh issue of 30.24 lakh shares. The price band for the offer is set between ₹104 and ₹110 per equity share, with a face value of ₹10 each. The IPO lot size is fixed at 1200 shares, requiring a minimum investment of ₹1,32,000 for retail investors.

The allotment for the IPO is expected to be finalised on Tuesday, September 10, 2024. The shares are scheduled to be listed on NSE SME, with a tentative listing date of Thursday, September 12, 2024.

Hem Securities Limited is the book running lead manager of the My Mudra Fincorp IPO, while Skyline Financial Services Private Ltd is the registrar for the issue. The market maker for My Mudra Fincorp IPO is Hem Finlease.

The company plans to use the proceeds from the issue to achieve several key objectives, including repaying a portion of its existing borrowings, investing in technology development and digital infrastructure, addressing its working capital needs, and fulfilling general corporate purposes.

About My Mudra Fincorp

Founded in 2013, the company operates as a channel partner (DSA) for prominent banks and NBFCs in India. Its business model combines telemarketing, advertising, direct marketing, referrals, and a "physital" (physical and digital) strategy to attract customers for these financial institutions.

As a channel partner, the company specializes in distributing a wide range of financial products, including secured loans like home loans and loans against property, unsecured loans such as personal and business loans, professional loans, and credit cards to customers.

Recently, the company has expanded its offerings to include the distribution of insurance products.

Customers can explore and compare various loan and insurance options provided by the company's lending and insurer partners, allowing for greater choice and transparency. After understanding customer needs, the company presents multiple options, clearly outlining associated costs and features, helping customers make well-informed decisions before applying to the appropriate financial institutions. Upon credit approval, the loans are easily sanctioned.

The company generates revenue through commissions earned from its various business lines. In the loan-related segment, it receives commissions from lending partners, while in the credit card business, commissions and fees are obtained from credit card issuers. The company also earns commissions from its partnerships with insurance providers, according to the company's DRHP report. 

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