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PE-backed MAS Financial gains 43% on trading debut
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Ahmedabad-based non-banking finance company MAS Financial Services Ltd made a stellar debut on the stock exchanges on Wednesday with its shares listing at a premium of nearly 44% to the issue price and largely holding on to the gains.

Shares of MAS Financial, which counts Sarva Capital as its private equity backer, began trading on the BSE at Rs 660 apiece compared with the initial public offering (IPO) price of Rs 459, stock exchange data showed.

The stock traded between Rs 680.95 and Rs 625 apiece. It closed at Rs 654.75, notching up gains of almost 43%. The benchmark BSE Sensex ended flat.

MAS Financial now commands a market capitalisation of Rs 3,579 crore. The company, formerly known as M/S Marketing & Allied Services, was seeking a valuation of Rs 2,526 ($384 million) through the IPO that led to roughly 18.5% stake dilution on the post-issue basis.

MAS Financial’s strong market debut follows an IPO that received humongous investor turnout and was subscribed 128 times.

It joins the likes of Capacit’e Infraprojects Ltd, Dixon Technologies and hypermarkets operator Avenue Supermart in attracting investors in droves. The IPO of Capacit’e was covered a record 182 times while Avenue Supermart’s share sale was subscribed 105 times. Contract electronics maker Dixon’s IPO was covered 117 times.

MAS Financial is one of several banking, finance and insurance companies that have gone public over the past year. These include PNB Housing Finance Ltd, small finance banks Ujjivan Financial Services Ltd and Equitas Holding Ltd, ICICI Prudential Life Insurance, RBL Bank, General Corporation of India and SBI Life Insurance.

MAS Financial had filed its draft red herring prospectus with the Securities and Exchange Board of India on 27 March. It received the market regulator’s nod on 26 May. The IPO raised about Rs 460 crore ($70 million). This comprised an issue of fresh shares worth Rs 233 crore and a sale of shares by existing investors worth Rs 227 crore.

Besides Sarva Capital, German and Dutch development finance institutions DEG and FMO are among its other investors.

Motilal Oswal Investment Advisors Pvt Ltd managed MAS Financial’s IPO.

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