MAS Financial Services, an Ahmedabad-headquartered NBFC, plans to raise about ₹600 crore through an IPO. The company is expected to file papers with the market regulator SEBI this week.

The IPO will include both a fresh issue of shares and offer for sale, sources close to the development told BusinessLine , but declined to divulge more details before an official announcement.

The company has appointed Motilal Oswal Investment Advisors as manager for the issue.

The present investors in the company include Netherlands-based Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO), Deutsche Investitions-Und Entwicklungsgesellschaft Mbh (DEG) and Lok Capital. These investments had been made through compulsorily convertible debentures.

FMO and DEG had invested ₹43.47 crore and €10 million (about ₹70 crore) respectively in MAS. Earlier, the company had received investments from Bellwether Micro Finance Fund and ICICI Venture Fund Management Company.

The company has a presence in Gujarat, Maharashtra, Rajasthan, Madhya Pradesh (Indore), Tamil Nadu (Chennai) and Karnataka (Bengaluru). It has 71 branches across 2,500 locations.

First off the block

MAS Financial will be the first NBFC to file papers with SEBI this calendar year.

Last year a few high-profile public offers by NBFC-turned-small finance banks — such as Equitas Holdings (₹2,163 crore raised) and Ujjivan Financial Services (₹882 crore) received good response from investors.

Both the IPOs were oversubscribed multiple times as investors tried to cash in on the NBFCs’ small finance lending, with established banks facing a capital crunch.

Set up in 1988, MAS Financial Services provides home loans, micro-enterprise loans, SME loans and two-wheeler, commercial vehicle and agricultural-based loans, among others.

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