Mufin Green shares hit upper circuit as company raise funds via NCDs

Shares of Mufin Green Finance Ltd hit their upper price band during Monday's trading session after the company announced to raise funds via non-convertible debentures (NCDs). The company informed about the same through an exchange filing on Friday.

The board of directors of company, in its meeting, inter alia, considered and approved the terms and conditions for issuance of 1,750 unlisted, secured, senior, redeemable, taxable, transferable, non-convertible debentures denominated in Indian Rupees having a face value of Rs 100,000 each and an aggregate face value of Rs 17.50 crore on a private placement basis, said the filing.

The company has fixed December 15, 2023 as the date of allotment of these debentures and debentures worth Rs 10 crore shall be matured on August 7, 2025, while remaining debentures amounting to Rs 7.50 crore shall be matured on June 15, 2025 for redemption, the filing said.

Mufin Green Finance is offering a coupon/interest rate of Rs 13 per cent per annum, which is payable on a monthly basis, it added. "The interest shall be payable on a semi-monthly basis in accordance with the debenture trust deed to be executed between the company and the debenture trustee (DTD). The Debentures shall be redeemed in accordance with the DTD."

Following the update, shares of Mufin Green Finance rose 5 per cent, locked in the buyer's circuit limit, to Rs 120.90 on Monday with a total market capitalization of Rs more than Rs 1,825 crore. The scrip had surged more than 250 per cent from its 52-week low at Rs 34.19 hit in March 2023.

The Reserve Bank of India (RBI) had recently approved Mufin Green Finance to operate as an issuer of pre-paid instruments (PPI), allowing it to launch the 'super app' for comprehensive financial services. The New Delhi-based Mufin Green Finance provides financing solutions for the EV ecosystem.

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