stock market
A broker monitors share prices at a brokerage firm in Mumbai August 9, 2011.Reuters

The shares of Gujarat-based non-banking financial company (NBFC) MAS Financial Services opened on the National Stock Exchange (NSE) on Wednesday at a whopping price of Rs 660, at a premium of 44 percent of its issue price.

The shares hit a high of Rs 670 before seeing some correction. At 11.30 am, the stocks were trading at Rs 662.30.

MAS Financial Services now joins the league of successful IPOs in 2017 which include Prataap Snacks, Capacit'e Infraprojects, Dixon Technologies, CDSL, Hudco and Avenue Supermarts.

The NBFC's Rs 460 crore IPO had received an overwhelming response from investors as it was oversubscribed 128.39 times, according to Moneycontrol.

The public issue was offered for subscription at a price band of Rs 456-Rs 459 per share during October 6-10. The issue registered strong demand coming from non-institutional investors.

The segment reserved for non-institutional investors was subscribed 378.53 times while the qualified institutional buyers (QIBs) portion saw subscription of 148.33 times. The retail category was subscribed 16 times.

The company's IPO comprised a fresh issue of shares worth up to Rs 233 crore and an offer for sale of up to Rs 227 crore by existing shareholders. Receives from its fresh issue segment would be utilised towards augmenting the capital base to meet future requirements, the company said in the DRHP.

MAS Financial Services has been in operation for more than two decades. Its branches are spread across six states and the NCT of Delhi. The company started its operation with a focus on micro enterprises (ME) loans and gradually expanded its loan portfolio to two-wheelers and commercial vehicles, SME and housing loans.

The company has reported a net profit of Rs 69 crore on net interest income of Rs 172 crore in the financial year 2017. Despite the growth, the firm's gross non-performing loans and credit costs have remained in a band of 1-1.2 percent.