Foreign Currency

Board approve USD 5000000 fund raising through issue of foreign currency-denominated bonds!

The stock gave multibagger returns of 360 per cent in just 1 year whereas BSE Small-Cap Index is up by 57 per cent.

Mufin Green Finance Ltd.’s board of directors, in a meeting held on Tuesday, March 12, 2024, authorized raising funds to USD 5 million by issuing foreign currency-denominated bonds under the External Commercial Borrowings (ECB) framework through private placement. This action is subject to relevant regulations and approval from applicable authorities.

What are Foreign currency-denominated bonds?

They are essentially debt instruments issued by a borrower (a company or government) in a currency different from their own. Imagine a US company needing capital and issuing bonds in Euros. These bonds would be considered foreign currency-denominated for US investors, as they are not in their home currency. This approach allows borrowers to access broader capital pools and potentially lower interest rates while offering investors the chance to diversify their portfolios and potentially benefit from foreign currency fluctuations. However, it also introduces additional risk, as the value of the bond’s returns and principal repayment can be impacted by movements in both the foreign currency and the investor’s home currency.

About Mufin Green Finance Ltd

Mufin Green Finance, an investment firm offering services like advisory, asset management, and financial planning, boasts a market cap of Rs 2,676.39 crore and an impressive 140 per cent CAGR profit growth over five years. While the planned acquisition of a controlling stake in LKP Finance is currently awaiting regulatory approval, Mufin Green Finance has established itself as a strong player in the investment landscape.

The company announced stellar Quarterly Results (Q3FY24) which caused the sudden rise in the stock price. The net sales increased by 155 per cent to Rs 27.18 crore, the operating profit (EBITDA) increased by 334 per cent to Rs 19.66 crore and the net profit increased by 98.7 per cent to Rs 4.55 crore in Q3FY24 compared to Q3FY23. The company reported net sales of Rs 65.74 crore and net profit of Rs 12 crore in 9MFY24.

Earlier, the company incorporated a new subsidiary named Mufin Green Infra Limited. This new company, with an authorized capital of Rs 15 lakh, is wholly owned by Mufin Green Finance Ltd. (with a 65 per cent initial cash investment) and is specifically established to venture into the field of EV infrastructure services and allied activities. This includes setting up electric vehicle charging stations, power and energy generating stations, and the civil work associated with building and maintaining these structures. As a recently incorporated entity, Mufin Green Infra Limited does not have a financial history or turnover yet.

Today, shares of Mufin Green Finance Ltd were locked in a 5 per cent lower circuit to Rs 177.25 per share from its previous closing of Rs 186.55. The stock’s 52-week high of Rs 273.10 while its 52-week low is Rs 34.19 per share. The stock gave multibagger returns of 360 per cent in just 1 year whereas BSE Small-Cap Index is up by 57 per cent.

From Rs 3.93 per share to Rs 177.25 per share, the stock gave multibagger returns of over 4,500 per cent in just 3 years. In the past three years, the company has implemented three corporate actions: a final dividend of Rs 0.2 per share on September 2, 2022, a 2:1 stock split on April 13, 2023, and a 2:1 bonus share issuance on July 02, 2023. These actions have increased the number of outstanding shares and potentially impacted the company’s stock price and financial ratios.

Disclaimer: The article is for informational purposes only and not investment advice. 

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