MAS Financial initiates Rs 400 crore QIP

20 Jun 2024 , 11:15 AM

MAS Financial Services Ltd, a non-banking financial company (NBFC), has initiated a Qualified Institutional Placement (QIP) worth ₹400 Crore on Wednesday (June 19), with an additional upside option of ₹100 Crore.

The QIP’s indicative price is ₹286.25 per share, representing an 8.5% discount to the prevailing market price (CMP), according to sources.

According to reports, the base size of the QIP suggests an 8.5% dilution of the company’s ownership, while exercising the upside option would boost the dilution to around 10.65%.

In addition, the promoter has a 90-day lock-in period, according to individuals close to the development.

In January of this year, Kamlesh Gandhi, founder, Chairman, and Managing Director of MAS Financial Services, stated that the company will continue focused on preserving the asset quality of its portfolio.

“We will create the portfolio while maintaining asset quality. So, throughout our product lives, we are extremely cognizant of the fact that it is not done, and that growth does not come at the expense of asset quality.

So the asset quality is somewhere between 2-2.5% of GNPAs and 1.5-2.0% of NNPAs.

According to Gandhi, the company’s microfinance portfolio is worth ₹4,500 Crore. In terms of microenterprise loans, we are one of the earliest financers to this segment and have a portfolio of close to ₹4,500 Crore.

Gandhi stated that MSMEs will account for 60% of the firm’s asset under management (AUM) mix. Our MSME will continue to contribute around 60% of the total assets, while 40% will come from wheels and housing.

At around 10.59 AM, MAS Financial was trading 3.05% higher at ₹322.50, against the previous close of ₹312.95 on NSE. The counter touched an intraday high and low of ₹328, and ₹315.70, respectively.

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