Mufin Green Finance, a non-banking financial company focused on financing sustainable assets, has raised ₹3.24 billion (~$35.22 million) through the preferential allotment of equity shares and warrants. Mufin Green allotted 24,930,765 fully paid-up equity shares with a face value of ₹1 (~$0.011) each, at a premium of ₹97 (~$1.05) per share, for a total issue price of ₹98 (~$1.07) per share. The company issued 7,653,061 warrants at ₹98 (~$1.07) each.

The warrants can be converted into equity shares in the future.

After the allotment, Mufin Green’s paid-up equity share capital has increased from ₹173.2 million (~$1.88 million), comprising 173,231,423 equity shares, to ₹198.2 million (~$2.15 million), comprising 198,162,188 equity shares.

“This fresh capital will fuel our expansion plans and position us to capitalize on the growing demand for our products,” said Kapil Garg, Managing Director at Mufin Green Finance.

Mufin Green said the latest preferential issue included participation from a mix of institutional investors, non-promoter high-net-worth individuals, and promoter entities. These included the investment management firm Sageone Capital, the multi-business conglomerate DS Group, the MMG Group family office, and the investor Sandeep Kapadia. Promoter group Hindon Mercantile subscribed to the warrants.

Founded in 2016, Mufin Green Finance has financed electric vehicles (EVs) worth over ₹3.5 billion (~$39.66 million), resulting in the deployment of ₹490 million (~$5.55 million) worth of EV assets on lease.

The company said the capital infusion will also strengthen its balance sheets, enhance its lending capacity, and accelerate growth in core focus areas of impact financing solutions. These focus areas include insurance premium financing, salary advances to government employees, and other tech-first financing solutions.

Garg added that the company expects quarter-on-quarter profit after tax to double going forward, driven by higher disbursements, improved operational efficiency, and favorable market trends in sustainable lending.

This January, Finnish development financier and impact investor Finnfund announced it will provide a $12 million senior secured loan facility to Mufin Green.

Last September, Mufin Green Finance completed the allotment of 5,000 non-convertible debentures worth ₹500 million (~$5.67 million) through a private placement.