2:1 bonus share, 2:1 stock split with 6,850 per cent multibagger returns: This EV-financing company incorporates a new subsidiary for EV infra services and allied activities!

From Rs 3.16 per share to Rs 219.75 per share, the stock gave multibagger returns of 6,850 per cent in just 1,621 days.

Mufin Green Finance Ltd, a company focused on electric vehicle financing, 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.

Mufin Green Finance, an investment firm offering services like advisory, asset management, and financial planning, boasts a market cap of over Rs 3,200 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.

This month, the Mufin Green Finance Board agreed to change 8,75,000 warrants into equity shares, each priced at Rs 41.25, collecting Rs 3.61 crore. This boosts the company's issued capital to Rs 15.87 crore and the total outstanding shares to 15.95 crore. These new shares have the same rights as the existing ones. On December 27, 2023, the company decided to issue 25,500,000 convertible warrants at Rs 55 each, with each warrant convertible into equity shares worth Rs 1, after getting 25 per cent of the issue price from the allottees.

Today, shares of Mufin Green Finance Ltd gained 4.34 per cent to an intraday high of Rs 219.75 per share from its previous closing of Rs 210.60. 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 440 per cent in just 1 year whereas BSE Small-Cap Index is up by 62 per cent.

From Rs 3.16 per share to Rs 219.75 per share, the stock gave multibagger returns of 6,850 per cent in just 1,621 days. 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.