MAS Financial Services files draft papers for $85 mn IPO
Sarva Capital-backed MAS Financial Services Ltd, an Ahmedabad-based non-banking financial company (NBFC) formerly known as M/S Marketing & Allied Services, filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India for an initial public offering (IPO).Under the Reserve Bank of India’s (RBI) capital adequacy regulations, NBFCs must have a capital-to-risk assets ratio (CRAR) of 15%.
As on six months ended September 2016, MAS had a CRAR of 20.08% on a standalone basis.The IPO will result in an approximate stake dilution of 20-25%, which would value the company at Rs 2,200-2,750 crore ($338-422.42 million). MAS Financial reported a consolidated net profit of Rs 34.84 crore for the six months ended September 2016 on a consolidated revenue (operation) of Rs 180.82 crore.
For 2015-16, MAS reported a revenue of Rs 303.45 crore compared with Rs 237.43 crore in the corresponding period last year. Its net profit stood at Rs 51.45 crore at the end of fiscal 2016 compared with Rs 40.80 crore in the previous year.