📦 1. At a Glance
Mufin Green Finance Ltd is raising ₹54.48 Cr via a private placement of secured, unrated, unlisted, redeemable, taxable, transferable, non-convertible debentures (yes, that’s one sentence). The NCDs will mature in 36 months, offer a 12.80% annual coupon, and are secured via hypothecation of book debts and receivables.
And no — they won’t be listed on exchanges.
🥶 2. Why This Matters
- 12.8% yield = decent signal of risk premium
- Not listed = no liquidity for retail; this is clearly institutional or NBFC-backed
- Secured by receivables = classic NBFC working capital maneuver
- Maturity: 3 years = matches their loan tenures
- Use of proceeds: likely to fund green 2W/3W EV loans and beef up AUM
🧮 3. Key Details Breakdown
| Parameter | Value |
|---|---|
| 💰 Issue Size | ₹54.48 Cr |
| 🏷️ Type | Secured, unlisted NCDs |
| 🧾 Coupon Rate | 12.80% p.a. (quarterly payout) |
| ⏳ Maturity | 3 years from allotment |
| 💼 Security | Hypothecation of book debts & receivables |
| 📈 Listing | Nope. Private only. |
| 🔄 Redemption | Out of profits/fresh issue |
| ❌ Defaults/Delays | NA |
🛠️ 4. Translation for Non-Debenture Nerds
Mufin is borrowing ₹54 Cr from private investors at 12.8% interest, promising to pay it back in 3 years. If they default, investors get control over EMI-paying customers instead of any real-world collateral like land, gold, or goats.
🔍 5. But Why Raise Now?
- NBFCs live and die by liabilities
→ Every ₹1 of capital can support ₹3–5 of loans - Q4/Q1 disbursements usually spike
→ Especially for EV financing in urban areas - Cheap bank lines drying up
→ So private debentures are Plan B
Plus, with cost of funds at 12.8%, expect Mufin to lend at 18–22% range. It’s margin-on-wheels.
🧾 6. Is the Market Reacting?
- As of July 8, 2025, MUFIN stock is at ₹___ (📌 you can fill in latest)
- No sharp moves yet, as this isn’t equity dilution or bonus news
- But steady debt raise is a confidence signal if they keep default-free
🧮 7. Risk-O-Meter
✅ Positives:
- Secured by book debts
- Institutional (not shady retail) raise
- Coupon reflects fair pricing
- Transparent SEBI disclosure
⚠️ Concerns:
- Not listed = opaque
- No rating = riskier pool?
- Dependence on steady cash flows
- EV NBFC space = rising competition + regulatory scrutiny
🧑⚖️ 8. EduInvesting Verdict™
This isn’t a scammy “fixed return” scheme your uncle forwards on WhatsApp.
This is a legit SEBI-compliant debt instrument meant for institutional appetite. A high-yield 12.8% bet, secured (on paper), but definitely not for retail sipping MUFINs and dreaming of passive income.
It’s part of the NBFC capital strategy game — raise > disburse > earn > rinse > repeat.
✍️ Written by Prashant | 📅 July 8, 2025
Tags: Mufin Green Finance, NCD Issue, ₹54.48 Cr Debenture Raise, 12.8% Coupon, Unlisted Bonds, NBFC Debt, Private Placement, Green Finance, EduInvesting SME Watch
