MAS FINANCIAL CLOSES 42.5% HIGHER OVER ISSUE PRICE
Shares of MAS Financial Services Ltd made a strong market debut on Wednesday. Shares of the Gujarat-based non-banking financial company (NBFC) ended 42.5% higher at ₹654.40 from its issue price. It was listed on the stock exchanges at ₹660, up 43.7% from its issue price of ₹459 per share. The ₹2,275-crore initial public offering (IPO) was subscribed 129 times.
The company had raised ₹135.91 crore from anchor investors, including Nomura, JP Morgan, Wasatch HDFC Mutual Fund (MF), ICICI Prudential MF, SBI MF, Birla Sun Life MF, DSP Blackrock MF and Reliance MF.
Ahead of the share sale, analysts had said that the valuation of the NBFC, which lends to middle and lower income segments, was reasonable. “At the upper band of the issue, the company trades is offered at 3.6 times post issue book value of ₹130 which is fairly priced in our view compared to peers,” said Prabhudas Lilladher Pvt Ltd.
According to the brokerage firm, MAS Financial Services has been able to display best in class return ratios with return on assets of 3% and return on equity of over 25% consistently in the last few years and is much better than immediate peers which operate in the same segment. “It is likely to continue to deliver on profitability and maintain superior return ratios,” it said.
The company’s assets under management (AUM) grew at an annual average rate of 33.4% over FY2013-17 with strong asset quality. As of Q4FY17 and Q1FY18, the company’s AUM was ₹3,332.6 crore and ₹3,451.7 crore, respectively. AUM increased from ₹1,053.2 crore as of FY13 to ₹3,332.6 crore as of FY17.
MUMBAI: