2:1 Bonus Issue: NBFC Stock Hits New 52-Week High On Ex-Bonus; Allots Rs 125 Crore Worth NCDs

NBFC major, MAS Financial Services touched a new high on Thursday as its stock price turned ex-bonus for its bonuses reward in the ratio of 2:1. The bonus shares come after MAS Financial posted a new milestone of crossing Rs 10,000 crore asset under management. The company was also in focus after allotting non-convertible debentures (NCDs) aggregating to Rs 125 crore. Year-to-date, MAS' share price has gained by over 17% on BSE.

MAS Financial Services Share Price:

On turning ex-bonus, MAS' share price touched a new 52-week high of Rs 387.70 apiece on BSE. However, after market hours, the stock price ended at Rs 339.05 apiece, up by 3.4% with a market cap of Rs 5,559.95 crore.

MAS Financial Services Share Bonus Issue:

Mas Financial stock turned ex-bonus on February 22 for its bonus issue in the ratio of 2:1. This means that the company is going to pay 2 new bonus shares having a face value of Rs 10 each, against every 1 existing share having a face value of Rs 10 each. The eligible members for bonus issue are determined on the record date which was also February 22.

In the bonus issue, the face value of a stock price does not change.

The company's paid-up capital shares are 5,46,62,043 on the pre-bonus basis, but post-bonus allotment, the paid-up capital shares will shoot up to 16,39,86,129.

MAS said the Bonus Shares once allotted shall rank pari-passu in all respects and carry the same rights of the existing Equity Shares and shall be entitled to participate in full in any dividend and other corporate action(s), recommended and declared after the issue and allotment of such Bonus Shares.

MAS Financial Services NCDs:

On February 21, MAS announced that it has allotted 12,500 fully paid, senior, secured, listed, rated, taxable, redeemable, transferable, nonconvertible debentures denominated in Indian Rupees, each having a face value of Rs 1,00,000 aggregating to Rs 125 crore on a private placement basis.

The date of maturity of the latest NCD issuance is set for August 21, 2025. Hence, the tenue is 18 months from the deemed date of allotment.

The initial coupon rate is 9.75% payable on an annual basis. The Interest on the Outstanding Principal Amounts shall accrue at the interest rate which shall be the aggregate of (a) the Benchmark Rate; plus (b) the applicable Spread from the Deemed Date of Allotment until the Debentures are repaid in full and shall be payable on each Coupon Payment Date. The interest/coupon is payable by the Company on an annual basis on 21st February 2025 and at maturity on 21st August 2025.

Also, the company will pay additional interest at 2% (two per cent) per annum over the Interest Rate in respect of the Debentures on the outstanding principal amounts from the date of the occurrence of a Payment Default (as defined in the DTD) until such Payment Default is cured or the Debentures are fully redeemed by the Company (whichever is earlier).

The Debentures shall be fully redeemed on a pari passu basis by the Company by making the payment of the outstanding principal amounts of the Debentures on the Final Redemption Date by the DTD.

MAS Financial Services Earnings:

On a consolidated basis, the company reports Assets under Management (AUM) of Rs 10,216.05 Crore and profit after Tax (PAT) of Rs 64.41 Crore for the quarter ended December 31, 2023, from Rs 8,004.59 Crore and Rs 51.88 Crore respectively for the quarter ended December 31, 2022. A Growth of 27.63 % in AUM and 24.5% in PAT over the corresponding period of the previous year.

In its financial report, MAS said, "This quarter witnessed a very important milestone of Rs 10,000 crores in AUM being crossed by the company. We took this opportunity to reward the shareholders by issuing bonus shares in the ratio of 2:1 (i.e. Two Bonus shares for every one share held). The consistent financial performance is the
testimony of the strong fundamentals of the company, which has been followed over more than two and half decades. We witnessed a healthy growth in business activities across the segments we serve, during the quarter. The consolidated disbursement was Rs 2,724 Crore during the quarter ended 31st December 2023."

About MAS Financial Services:

MAS Financial Services Limited (MFSL) under the Co-Lending Model (CLM) for financing Secured Business Loans. MAS Financial Services Ltd (MFSL), the group's flagship company, commenced operations in 1996 in Gujarat by extending credit to Micro, Small and Medium Enterprises (MSMEs) and two-wheeler financing.