New Delhi: Ahmedabad-based retail lender Mas Financial Services Ltd on Monday filed draft papers to raise Rs550 crore in an initial public offering (IPO).
The firm will sell new shares of Rs307 crore while existing investors will sell shares worth Rs242 crore in the initial public offer (IPO), the company’s draft red herring prospectus (DRHP) said.
The non-banking financial company (NBFC), founded in 1988, offers home loans, SME loans and auto loans, among others. It operates in Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu, Karnataka and the National Capital Territory of Delhi, catering to the lower and middle income groups.
Mas Financial said it may also go for a private placement of up to 4.1 million shares to raise up to Rs135 crore. If the placement is completed, the size of the fresh issue will be reduced by a similar amount.
The money will be used to augment its capital base to meet future capital needs.
Motilal Oswal Investment Advisors Pvt. Ltd is the book running lead manager to the issue.
Existing investors in Mas Financial are Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO), Deutsche Investitions-Und Entwicklungsgesellschaft Mbh (DEG) and Lok Capital II LLC.
While FMO has invested Rs43.47 crore through cumulative compulsorily convertible preference shares, DEG has invested €10 million, information on the company’s website said. The amount raised from Lok Capital was not disclosed.
In its Vision 2015 released in 2011, the firm said it will look at diluting up to 25% in 2014-16 through an IPO, depending upon the market, to unlock close to Rs800-1,000 crore to fund expansion.
As of 30 September 2016, the net worth of MAS Financial Services was Rs220 crore on a consolidated basis and its assets under management stood at Rs2927 crore. Some of the listed NBFCs in India are Bharat Financial Inclusion Ltd, Ujjivan Financial Services Ltd and Equitas Holdings Ltd.
