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NBFC stock jumps 3% after company successfully raised ₹ 500 Cr through QIP

Published 24-06-2024, 01:53 pm
NBFC stock jumps 3% after company successfully raised ₹ 500 Cr through QIP

The share price of this small-cap NBFC firm gained 3 percent to reach an Intraday high of Rs 321 per share on Monday after the company raised Rs 500 crores of funds through Qualified Institutional Placement (QIP).

With a market capitalization of Rs 5,212.30 crores, the shares of MAS Financial Services Ltd went up by 3 percent, trading at Rs 319.05 a piece on Monday’s afternoon session.

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According to the company’s stock exchange filings, the company announced the successful completion of Rs 500 crore through Qualified Institutional Placement (QIP). This QIP is the company’s first time raising equity since its IPO in 2017.

Also, the exchange filings mention that the size of the QIP was Rs 500 crores including a green shoe option of Rs 100 crores with an issue price of Rs 286.25 per share and a face value of Rs 10 each. The Total Number of Paid up Equity Shares Post Allotment is 18,14,53,377 units.

The QIP received a strong response from a wide range of prominent institutional investors, demonstrating broad-based interest. Major domestic institutional investors included Nippon India Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Bandhan Mutual Fund, Baroda BNP Paribas (EPA:BNPP) Mutual Fund, and White Oak Capital Management.

Insurance companies such as Bajaj Life Insurance, SBI (NS:SBI) General Insurance, Tata AIG (NYSE:AIG) Insurance, and PNB Met Life Insurance also participated in the QIP. Further, Foreign institutions such as Birla Offshore, East Bridge Capital, Samsung (KS:005930) Asset Management, and others were also a part of it, according to the exchange filings.

Reviewing the financials of MAS Financial Services Ltd on a year-on-year basis, the revenues rose by 29.3 percent from Rs 989 crores in FY23 to Rs 1,279 crores in FY24. In the same time frame, the net profits increased from Rs 206 crores to Rs 254 crores demonstrating a 23.3 percent increase.

In terms of return ratios for the year 2024, it has reported a return on equity of 14.08 percent and a return on capital employed (ROCE) of 53.60 percent.

The company has a strong Distribution network with 189 branches and present across India and additionally PAN India Network presence through 182 NBFC partners.

From March 2023 to March 2024, the Assets Under Management (AUM) for Micro Enterprise Loans grew by 13.19 percent YoY From Rs 3,874 crores to Rs 4,385 Crores. During the same period, 2-wheeler loans saw a 20.88 percent increase YoY from Rs 554 crores to Rs 670 crores, while commercial vehicle loans experienced a significant growth of 100.72 percent YoY from Rs 372 crores to Rs 747 crores.

The shares of this company generated an overall return of 24.70 percent over the past one year and 11.71 percent over the past 6 months.

As of March 2024, the firm’s shareholding pattern stood at 73.73 percent for promoters, 10.07 percent for the public, 1.79 percent for foreign institutional investors, and 14.41 percent for domestic institutional investors.

MAS Financial Services Limited is a non-deposit-taking NBFC registered with the RBI. It is engaged in offering retail financing products for MSMEs, home loans, two-wheeler loans, used car loans, and commercial vehicle loans.

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Written By Zahal.

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