My Mudra Fincorp debuts on NSE SME with 18.2% premium

New Delhi, Sep 12 (KNN) My Mudra Fincorp Ltd made its stock market debut on September 12, with shares listing at Rs 130 on the NSE SME platform, an 18.2 per cent premium over the issue price of Rs 110 per share.

The initial public offering (IPO), which raised Rs 33.26 crore through a fresh issue of 30.24 lakh shares, garnered significant investor interest during its three-day subscription period.

The issue was oversubscribed by more than 100 times, with non-institutional investors leading the demand at 159 times their allotted quota.

Retail investors subscribed 109 times their portion, while qualified institutional buyers purchased over 48 times their allotment.

Despite the strong listing, the gains fell short of grey market expectations, where shares were trading at a premium of nearly 33% prior to the official debut.

The grey market is an unofficial trading platform where shares are traded before the official listing.

My Mudra Fincorp, established in 2013, operates as a Channel Partner for major banks and non-banking financial companies (NBFCs) in India.

The company specialises in distributing and selling various financial products, including secured and unsecured loans, as well as credit cards. Recently, it has expanded its portfolio to include insurance products.

The company intends to use the IPO proceeds for multiple purposes, including partial repayment of existing borrowings, investment in technology development and digital infrastructure, and fulfilling working capital requirements.

A portion of the funds will also be allocated for general corporate purposes.

(KNN Bureau)