Mufin Green Finance Limited has announced the withdrawal of a significant portion of its proposed preferential issue, citing regulatory approval delays. The company informed the stock exchanges on January 28, 2026, about its decision to cancel the equity shares component meant for consideration other than cash.

Withdrawal Details

The Committee of the Board of Directors has decided to withdraw the proposed issue of equity shares for non-cash consideration due to challenges in obtaining regulatory approvals for valuation purposes. The withdrawn component represents a substantial portion of the originally planned fundraising initiative.

Original Preferential Issue Structure

The preferential issue was originally approved by the Board of Directors in their meeting held on November 6, 2025, and subsequently approved by shareholders in an Extraordinary General Meeting on November 29, 2025. The comprehensive issue included three distinct components designed to raise capital through different instruments.

Remaining Issue Components

Despite the withdrawal of the non-cash equity component, the company confirmed that all other terms and conditions of the remaining preferential issue will continue unchanged. The cash component and warrant issue remain active, with applications for in-principle approval currently pending with the stock exchanges.

The warrant component allows conversion into equity shares of face value Rs 1.00 each at a premium of Rs 97.00, providing flexibility for future capital infusion based on market conditions and company requirements.

Impact Assessment

Mufin Green Finance has assured stakeholders that the withdrawal will not have any material impact on the company's business operations or financial stability. This statement suggests that the company has alternative funding arrangements or sufficient capital reserves to meet its operational and growth requirements.

The company's proactive communication to both BSE Limited and National Stock Exchange of India Limited demonstrates its commitment to transparency and regulatory compliance. The decision reflects a pragmatic approach to capital raising, prioritizing regulatory certainty over immediate fundraising timelines.

Mufin Green Finance Limited has announced a significant funding milestone with the signing of a finance agreement with Finnish Fund for Industrial Cooperation Ltd (Finnfund) for a loan facility of up to $12 million. The company's shares were trading at ₹118.00, up by ₹0.28 or 0.24% on the NSE at 11:55 am, reflecting positive market sentiment following the announcement.

Loan Facility Details

The structured financing arrangement provides Mufin Green Finance with substantial capital to expand its operations:

About Finnfund

Finnfund operates as a development finance company incorporated under Finnish laws and is majority-owned by the Government of Finland. This partnership brings international credibility and support to Mufin Green Finance's growth strategy, aligning with global sustainable finance initiatives.

Security and Transaction Structure

The finance agreement includes specific security arrangements to protect the lender's interests:

• Security Arrangement: Finnfund will have a charge on identified loan receivables of Mufin Green Finance
• No Special Rights: The agreement excludes board appointments, first right to share subscription, or restrictions on capital structure changes
• Clean Transaction: No related party arrangements are involved in this transaction
• No Shareholding: Finnfund holds no shareholding in Mufin Green Finance Limited

Business Impact

The term loan facility will be utilized specifically to finance the company's onward lending business, providing Mufin Green Finance with enhanced capital capacity to serve its customer base and expand its lending portfolio. This funding arrangement supports the company's operational growth without diluting existing shareholder equity or imposing restrictive governance conditions.