MAS Financial Services Limited (MFSL) has strengthened its footprint in the housing finance market by increasing its stake in its subsidiary, MAS Rural Housing and Mortgage Finance Limited (MRHMFL). The move reflects MFSL’s strategic intent to deepen its presence in the middle-income housing finance segment, particularly across semi-urban and rural regions.
Share Conversion Boosts Ownership
MFSL enhanced its shareholding in MRHMFL from 62.02% to 62.54% through the conversion of 333,333 optionally convertible preference shares (OCPS) into equity shares. The Finance Committee of MRHMFL approved the allotment on September 12, 2025, with the equity shares issued at ₹100 per share.
MRHMFL: Focused on Middle-Income Housing
MRHMFL, a housing finance company registered with the National Housing Bank, caters primarily to middle-income borrowers. This demographic is widely regarded as a key driver of India’s housing sector, often comprising individuals with informal but reliable income sources.
The subsidiary has demonstrated steady growth in recent years:
| Financial Year | Turnover (₹ Crores) |
| 2024–25 | 81.08 |
| 2023–24 | 62.46 |
| 2022–23 | 43.75 |
For the quarter ended June 30, 2025, MRHMFL reported a turnover of ₹23.00 crore and a net profit of ₹2.76 crore, underscoring its upward trajectory.
Strategic Significance
The increase in shareholding further consolidates MFSL’s control over MRHMFL, aligning with its broader strategy to expand housing finance offerings in semi-urban and rural markets. With demand for affordable housing continuing to grow, MFSL aims to leverage MRHMFL’s niche focus to capture a larger share of this evolving segment.
Compliance and Disclosures
The share conversion and stake increase were executed in line with SEBI regulations, with MFSL notifying both BSE Limited and the National Stock Exchange of India Limited (NSE) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Summary
- MFSL increased its stake in subsidiary MRHMFL from 62.02% to 62.54%.
- The increase came via conversion of 333,333 OCPS into equity shares at ₹100 each.
- MRHMFL, focused on middle-income housing finance, reported turnover of ₹81.08 crore in FY25.
- The move supports MFSL’s strategic expansion into semi-urban and rural housing markets.
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