MAS Financial Services has allotted ₹140 crore in senior, secured NCDs at an 8.70% coupon rate with a 24-month tenure. The funds will support liquidity needs.
MAS Financial Services Allots ₹140 Crore in NCDs
MAS Financial Services Limited has successfully raised ₹140 crore by issuing 14,000 senior, secured, rated Non-Convertible Debentures (NCDs). The issuance was conducted on a private placement basis. ## What just happened The Finance Committee of MAS Financial Services approved the allotment of these NCDs. The total amount raised is ₹140 crore, with each debenture having a face value of ₹1,00,000. The debentures carry a coupon rate of 8.70% per annum, payable quarterly, and have a tenure of 24 months, maturing on June 24, 2028. ## Why this matters This capital infusion will support MAS Financial Services' ongoing liquidity requirements. The NCDs are rated 'CARE AA- (Stable)' by CARE Ratings, indicating a low credit risk. The security offered includes a first-ranking charge over identified assets like book debts and loan receivables, with a required asset coverage ratio of 1.1x. ## The backstory MAS Financial Services is a non-banking financial company (NBFC) providing a range of financial products and services. Raising funds through debt instruments like NCDs is a common practice for NBFCs to manage their balance sheets and fund growth. ## What changes now The company has increased its available capital for lending and other operational activities. The issuance is compliant with SEBI regulations for NCDs and will be listed on the BSE's Wholesale Debt Market segment for enhanced liquidity. ## Risks to watch A default penalty of an additional 2% per annum over the coupon rate applies if payment obligations are not met. Investors should monitor the company's debt servicing capabilities. ## Peer comparison Interest rates on NCDs for similar rated financial companies can vary based on market conditions and tenure. MAS Financial's 8.70% rate is competitive for its credit rating. ## Context metrics (time-bound) MAS Financial Services raised ₹140 crore via 14,000 NCDs with an 8.70% coupon and 24-month tenure, maturing June 24, 2028. The credit rating is CARE AA- (Stable).
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