MAS Financial Services has completed the allotment of ₹150 crore worth of non-convertible debentures (NCDs) on a private placement basis, securing long-term funding at a 9% per annum coupon rate. The Finance Committee of the Board of Directors approved the allotment on July 27, 2026, finalizing an issuance that strengthens the company’s debt capacity while maintaining a stable credit profile, evidenced by a CARE AA- rating from CARE Ratings Limited.

The issuance complies with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Chapter V and Annexure 18 of the SEBI LODR Master Circular dated January 30, 2026. The Board of Directors had initially approved the issue in its meeting on April 29, 2026. This capital raise provides the company with efficient, non-dilutive financing suitable for its operational and growth needs.

The NCDs are rated, listed, senior, secured, redeemable, transferable, and taxable. Each debenture has a face value of ₹10,000, resulting in a total issuance of 1,50,000 units with an aggregate nominal value of ₹150 crore. These instruments are proposed to be listed on the Wholesale Debt Market segment of BSE Limited, enhancing liquidity and transparency for investors.

The tenure of the instrument is 28 months and 21 days from the deemed date of allotment, with a final redemption date set for December 18, 2028. Interest is payable monthly, offering steady income to investors while creating regular cash flow obligations for the company. The principal amount will be repaid on the final redemption date. In the event of a payment default exceeding three months, additional interest at 2% per annum over the prevailing interest rate will be charged on the defaulted amounts until the default is cured or the debentures are redeemed.

Security and Risk Mitigation

The debentures are secured by a first-ranking exclusive and continuing charge over certain identified book debts and receivables of the company, including loan receivables and receivables from investment proceeds. This hypothecation ensures that the value of the secured assets remains at least 1.10 times the outstanding amount of the debentures at all times until full redemption. This collateral coverage provides a significant safety margin for investors, aligning with the strong credit rating and reducing the risk associated with the debt issuance.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE348L01012/31c0e52336424e75.pdf

MAS Financial Services has allotted 25,000 rated, listed, secured, redeemable, non-convertible debentures (NCDs) aggregating ₹250 Cr on a private placement basis to strengthen its capital base. The debentures carry a floating interest rate linked to the 3-month T-bill plus a spread of 374 basis points, providing the company with flexible funding at market-linked rates. This issuance underscores the lender's ability to access debt capital through the wholesale debt market segment of BSE Limited.

The Finance Committee of the Board of Directors approved the allotment on July 9, 2026. The NCDs have a face value of ₹1,00,000 each and a tenure of 1 year, 11 months, and 3 days, maturing on June 12, 2028. CARE Ratings Limited has assigned a rating of "CARE AA-/Stable" to the instrument, indicating high creditworthiness.

Key Details of the Allotment

Interest and Security Structure

The coupon rate is a floating interest rate determined by the aggregate of the prevailing 3-month T-bill rate published by Financial Benchmarks India Private Limited and a spread of 374 bps. Interest is payable annually. The debentures are secured by a first ranking exclusive and continuing charge over certain identified receivables, including loans and book debts. The value of the hypothecated assets must remain at least 1.10 times the outstanding amount of the debentures until full redemption.

In the event of a payment default, the company will pay additional interest at 2% per annum over the prevailing interest rate on the defaulted amounts until the default is cured or the debentures are redeemed. The principal amount is payable on the Final Redemption Date, June 12, 2028.