<article><a style="color: #000080;" href="http://dealstreetasia.com/tag/motilal-oswal" target="_blank">Motilal Oswal Financial Services Ltd</a> and a subsidiary will acquire a 9.07 per cent stake in Ahmedabad-based <a style="color: #000080;" href="http://dealstreetasia.com/tag/mas-financial-services" target="_blank">MAS Financial Services Ltd</a>.
As part of the deal, the two entities will invest a total of Rs 135 crore ($20.8 million) in the non-banking financial company, according to a stock exchange filing.</article>

<a style="color: #000080;" href="http://dealstreetasia.com/tag/motilal-oswal" target="_blank">Motilal Oswal Financial Services Ltd</a> and a subsidiary will acquire a 9.07 per cent stake in Ahmedabad-based <a style="color: #000080;" href="http://dealstreetasia.com/tag/mas-financial-services" target="_blank">MAS Financial Services Ltd</a>.
As part of the deal, the two entities will invest a total of Rs 135 crore ($20.8 million) in the non-banking financial company, according to a stock exchange filing.
The stake will subsequently be transferred to<a style="color: #000080;" href="http://dealstreetasia.com/tag/mope-investment" target="_blank"> MOPE Investment Advisors Pvt. Ltd</a>, the group’s private equity arm, it added.
Under the terms of the deal, MAS Financial Services has allotted shares worth Rs 80 crore to the company and shares valued at Rs 20 crore to<a style="color: #000080;" href="http://dealstreetasia.com/tag/motilal-oswal-securities" target="_blank"> Motilal Oswal Securities Ltd</a>. The remaining shares worth Rs 35 crore will to Motilal Oswal Securities by the end of April.
The move comes just as the retail lender is gearing up for an $84.5 million initial public offer, for which it filed draft papers earlier this week.
After the transaction is completed by April end, MOPE would have consolidated holding of 3.9 million shares for Rs 338.31 per share for both tranches in the company. The pre-IPO round values the company at $209 million.
Motilal Oswal Investment Advisors Pvt. Ltd is the book running lead manager to the issue.
Founded in 1988, the NBFC, offers home loans, SME loans and auto loans, among others. It operates in Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu, Karnataka and the National Capital Territory of Delhi, catering to the lower and middle income groups.
According to the company&#8217;s draft red herring prospectus (DRHP), the firm will sell new shares of Rs 307 crore while existing investors will sell shares worth Rs 242 crore in the IPO.
The DRHP also stated that Mas Financial may also go for a private placement of up to 4.1 million shares to raise up to Rs135 crore. If the placement is completed, the size of the fresh issue will be reduced by a similar amount.
Also Read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-mas-financial-services-files-draft-papers-for-84-5m-ipo-68638/" target="_blank">India: Mas Financial Services files draft papers for $84.5m IPO</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/65998-65998/" target="_blank">India: Updater Services raises $15m from MOPE Investment Advisors</a>

India: Motilal Oswal picks up 9% stake in MAS Financial for $21m

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India: Motilal Oswal picks up 9% stake in MAS Financial for $21m

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