NBFC Stock Approves Rs 15,00,00,000 Fundraising Via NCDs; Do You Own?

Mufin Green Finance Ltd.'s shares were the subject of attention on Friday as the small-cap NBFC company surged to an intraday high of Rs 122.51 after opening at Rs 120.05 on the NSE. The stock was trading at Rs 121.42 at 12:56 p.m. IST, up 0.65% from the previous closing price of Rs 120.64.

The stock price surged after the company declared that at its meeting today, Friday, November 29, 2024, the Committee of the Board of Directors of the company had considered and approved raising funds through the issuance of rated, unlisted, secured, senior, redeemable, taxable, transferable, and non-convertible debentures denominated in Indian Rupees through private placement basis for up to Rs 15,00,00,000, subject to the approval of the relevant regulatory authorities and in accordance with the applicable laws.
Mufin Green Finance took things a step further last month by issuing and allocating Rs 22 crore in privately placed non-redeemable debentures. These secured convertible debentures, which mature on June 28, 2027, are backed by the hypothecation of the business's book debts.

During the second quarter of FY25, Mufin Green Finance reported net sales of Rs 46.21 crore, which was a 120% rise from the previous period that started a year ago. The net profit for Q2 FY 25 increased by about 41% to Rs 5.67 crore as compared to the 12 months earlier. When comparing H1FY24 with H1FY25 on a year-over-year basis, net sales climbed 116% to Rs 83.19 crore and net profit climbed 35% to Rs 10.06 crore for the first half of FY25. With net sales rising 184% to Rs 97.60 crore and net profit rising 100% to Rs 16.06 crore in Fiscal Year 2024 compared to Fiscal Year 2023, respectively, the yearly results further supported this upward trend.

Both net sales and net profits improved in Q4FY24, with net sales up 139% to Rs 32.21 crore and net profit rising 52.3% to Rs 4.05 crore over Q4FY23. In the first quarter of FY25, FIIs purchased 6,27,068 shares, increasing their stake by 0.493% from March 2024's 0.11%. Additionally, by issuing 300 non-convertible debentures (NCD) to AAV Sarl and Masala Investment Sarl, each worth one crore, Mufin Green Finance was able to raise Rs. 30 crore. Between 2027 and 2031, these secured and redeemable NCDs will mature with an annual interest rate of 11.75%, with interest paid every six months.
One of the key participants in the growth of the nation's green finance industry remains Mufin Green Finance.