Ahmedabad-based NBFC (non-banking finance company) MAS Financial Services has filed its draft prospectus with capital market regulator SEBI to bring its IPO. Through MAS Financial Services IPO, a total of INR550 crore (INR5.5 billion) are expected to be mobilized through a combination of fresh equity (INR307.4 crore) and an Offer For Sale (OFS, INR242.6 crore) by existing shareholders. The company counts Deutsche Investitions-Und Entwicklungsgesellschaft Mbh (DEG), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO), and Sarva Capital (earlier known as Lok Capital II LLC). All the three investors will participate in the IPO.
The company’s operations span across Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu, Karnataka and the National Capital Territory of Delhi. MAS Financial Services offers micro-enterprise loans, SME loans, two-wheeler loans, Commercial Vehicle loans, and housing loans. Within these categories, the company’s focus is on lower and middle income groups. Established in 1988, MAS Financial Services has nearly three decades of operational history under its belt.
MAS Financial Services is also considering a private placement of up to 4,100,000 shares at a price of INR329.2 per share for a total consideration of up to INR135 crore. If the company completes the pre-IPO placement, it plans to reduce the size of MAS Financial Services IPO to the same extent.
Use of proceeds from MAS Financial Services IPO
The proceeds from MAS Financial Services IPO will be utilized towards augmenting its capital base to meet future capital requirements. Motilal Oswal Investment Advisors Private Limited is the book running lead manager to the issue and Link Intime India Private Limited is the registrar to the Issue.
Financial services stocks are having a dream run on the exchanges and it is no different in the IPO market. Last year, micro-lenders Equitas Holdings and Ujjivan Financial Services launched their public offers which went on to reward IPO investors handsomely. Another small finance bank license holder AU Financiers has received SEBI approval for launching IPO.