MAS Financial Services Limited has strengthened its position in its housing finance subsidiary through a significant equity acquisition. The company has increased its shareholding in MAS Rural Housing & Mortgage Finance Limited to 63.74% following the allotment of additional equity shares on March 31, 2026.

Investment Details

The financial services company invested Rs. 24,99,99,969 to acquire 12,67,170 equity shares in its subsidiary through a rights issue. This transaction was structured as a cash consideration deal, with shares allotted at a face value of Rs. 10 each and a premium of Rs. 187.29 per share.

Shareholding Changes

Following this acquisition, MAS Financial Services has increased its total shareholding in the housing finance subsidiary by 1.20%. The company now holds 1,67,61,455 equity shares, representing 63.74% of the total equity share capital, compared to the previous holding of 62.54%.

Subsidiary Performance

MAS Rural Housing & Mortgage Finance Limited operates as a housing finance company registered with the National Housing Bank. The subsidiary focuses on serving the middle income segment of society, particularly in semi-urban and rural areas. As of December 31, 2025, the subsidiary reported a turnover of Rs. 72.44 crores and net profit of Rs. 8.76 crores.

The subsidiary's financial performance over the last three years shows consistent growth:

Strategic Rationale

According to the company's regulatory disclosure, while MAS Rural Housing & Mortgage Finance Limited currently maintains sufficient capital adequacy and liquidity for existing liabilities, this capital infusion will enhance its liquidity position and support expansion of business activities. The investment aims to meet general business requirements and working capital needs for smooth operations.

Regulatory Compliance

The transaction was conducted in compliance with Section 179(3)(e) of the Companies Act, 2013, and Regulation 23 of SEBI Listing Regulations. The Audit Committee approved this related party transaction on January 28, 2026, followed by Board of Directors' approval on the same date. The acquisition was completed through the Finance Committee resolution of the subsidiary on March 31, 2026.

The company has filed the necessary disclosures under Regulation 30 of SEBI Listing Regulations, confirming that all documents will be uploaded on stock exchange websites and the company's official website.

MAS Financial Services has successfully completed the allotment of secured Non-Convertible Debentures (NCDs) worth ₹100 crore through private placement on March 25, 2026, as announced to stock exchanges under Regulation 30 of SEBI LODR Regulations.

Debenture Allotment Details

The Finance Committee of the Board of Directors has allotted 10,000 rated, listed, senior, secured, redeemable, transferable, taxable, non-convertible debentures denominated in Indian Rupees. Each debenture carries a face value of ₹1,00,000 with an aggregate nominal value of ₹100,00,00,000.

Interest Rate and Payment Structure

The NCDs carry an annual interest rate of 8.60% payable on a monthly basis. Interest payments will commence from April 25, 2026, and continue until the final redemption date, providing regular income flow to debenture holders.

Security and Credit Rating

The debentures are secured by a first ranking exclusive charge over identified receivables of the company, with the value of hypothecated assets maintained at least 1.10 times the outstanding debenture amounts. CARE Ratings Limited has assigned a credit rating of "CARE AA-/Stable" to these debentures.

Redemption Structure

The debentures will be fully redeemed on a pari passu basis through quarterly payments commencing from June 25, 2026, until the final redemption date of March 25, 2029. In case of payment default, additional interest of 2.00% per annum over the base rate will be applicable.

The successful completion of this NCD issuance demonstrates MAS Financial Services' continued access to debt capital markets and strong investor confidence in the company's creditworthiness.

Source: Company/INE348L01012/da257aba-11fa-4e8f-a44c-b06b982fb021.pdf