Heavy buying NBFC stock with 3,600 per cent returns: Promoter Group allocated 9.3 lakh equity shares; scrip locked in upper circuit on April 22

The stock gave multibagger returns of 196 per cent in just 1 year whereas BSE Small-Cap Index is up by 62.5 per cent.

Today, shares of Mufin Green Finance Ltd were locked in a 5 per cent upper circuit to Rs 123.20 per share from its previous closing of Rs 117.35. The stock’s 52-week high of Rs 273.10 while its 52-week low is Rs 35 per share. The stock gave multibagger returns of 196 per cent in just 1 year whereas BSE Small-Cap Index is up by 62.5 per cent.

Mufin Green Finance is a company that provides financial solutions to underserved communities in India. They focus on climate financing solutions, such as loans for electric vehicles. Their mission is to create financial opportunities and a more sustainable planet. Mufin Green Finance, an investment firm offering services like advisory, asset management, and financial planning, boasts a market cap of Rs 1,860 crore and an impressive 228 per cent CAGR profit growth over 3 years.

The Board of Mufin Green Finance Ltd issued 9.3 lakh equity shares with a face value of Rs 1 each through a preferential allotment. This issuance was done to convert previously issued warrants. The warrants had an issue price of Rs 63.30 each and upon conversion, investors needed to pay the remaining balance amount, also known as the "Warrant Exercise Price," which totalled Rs 4,41,51,750. Following this conversion, the pre-issue equity holding of the promoter group (Hindon Mercantile Limited) increased from 54.17 per cent (8,73,11,152 shares) to 54.43 per cent (8,82,41,152 shares) of the total outstanding shares.

Also Read: Artificial Intelligence (AI) revolutionizing healthcare: A look at the present and future!

The company's performance in the first nine months of fiscal year 2024 (9MFY24) has been significantly stronger than its performance in the entirety of fiscal year 2023 (FY23). Net sales have grown by Rs 30.67 crore, representing an increase of nearly 87 per cent (from Rs 35.16 crore to Rs 65.83 crore). Net profit has also seen a substantial rise of Rs 3.88 crore, reflecting a growth of almost 48 per cent (from Rs 8.12 crore to Rs 12 crore). These figures point towards a positive trend for the company in the current fiscal year.

From Rs 3.33 per share to Rs 123.2 per share, the stock gave multibagger returns of over 3,600 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.