Non-banking finance company MAS Financial Services Ltd. made its stock market debut at a premium of 43.8 percent at Rs 660 per share compared to its issue price. The stock saw an intraday high of Rs 670 and a low of Rs 641 on the National Stock Exchange.
The Rs 460-crore initial public offering was subscribed 128.43 times with the non-institutional investor’s portion getting the highest demand at over 380 times the number of shares on offer. The quota for qualified institutional bidders was subscribed 149 times while the retail segment was subscribed 14.41 times, according to stock exchange data. The employee portion saw muted demand at 2.42 times the number of shares allocated for the segment.
The funds raised by issuing new shares will be used to meet future capital requirements. As per the issue price of Rs 459 a piece, MAS Financial is valued at 6.8 times its book value for the year to March and at 4 times its book value on a post-dilution basis. That’s higher than peers such as Shriram City Union Finance Ltd. and Capital First Ltd. and is comparable to that of Bajaj Finance Ltd.
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