MAS Financial Services Limited (MFSL) has announced an increase in its equity stake in its subsidiary, MAS Rural Housing and Mortgage Finance Limited (MRHMFL), following the conversion of 6% Non-Cumulative Optionally Convertible Preference Shares (OCPS). The conversion, approved by the Finance Committee of MRHMFL on September 12, 2024, results in MFSL acquiring 333,333 equity shares at an offer price of Rs. 100 each.
The acquisition raises MFSL’s shareholding in MRHMFL from 60.77% to 61.33%, further consolidating its control over the housing finance subsidiary. MRHMFL, registered with the National Housing Bank, focuses on serving the middle-income segment, which is a key driver of the housing industry, particularly in semi-urban and rural areas.
The company’s latest financials as of June 30, 2024, show a turnover of Rs. 18.63 crore and a net profit of Rs. 2.17 crore. MRHMFL’s strategic role in providing financial assistance to the middle and lower-income sectors aligns with MFSL’s broader mission to support economic growth in these demographics.
This move is part of MFSL’s ongoing strategy to strengthen its foothold in the housing finance market. The transaction, executed at arm’s length, underscores MFSL’s commitment to expanding its influence and operational capabilities within its subsidiary.
The increase in equity stake will enable MFSL to have a greater say in MRHMFL’s strategic decisions, ensuring alignment with the parent company’s growth objectives.
