Motilal Oswal Financial Services announces ₹1,000 crore public NCD issue, issue opens on April 23

Motilal Oswal Financial Services has announced the opening of its public issue of secured redeemable non-convertible debentures (NCDs) worth ₹1,000 crore. The issue is scheduled to open on April 23 and close on May 7, the company said in an exchange filing.

The issue has been rated AA/Stable by CRISIL Ratings and India Ratings.

There are eight series of the NCDs which will carry fixed coupons and have a tenure of 24 months, 36 months, 60 months, and 120 months with annual, monthly and at maturity interest options. Effective annual yield for the instruments ranges from 8.85% per annum to 9.70% per annum, the company said.

At least 75% of the funds raised through this issue will be used for the purpose of meeting working capital requirements and repayment of existing liabilities and the balance amount would be utilised for general corporate purposes, the company said.

Trust Investment Advisors, Nuvama Wealth Management and Motilal Oswal Investment Advisors are the lead managers to the issue. The NCDs are proposed to be listed on the BSE and the NSE, the company said.

Motilal Oswal Financial Services is a financial services firm that offers capital markets businesses, asset and wealth management, housing finance and equity based treasury investments. During the third quarter of fiscal year 2024, consolidated operating revenue for the company grew 30% on a year-on-year (y-o-y) basis to ₹1,377 crore while consolidated net profit for the quarter rose 222% y-o-y to ₹774 crore.

During the third quarter, the company delivered its highest ever quarterly capital market business of ₹202 crore, up 44% on a y-o-y basis, it said. Motilal Oswal Financial Services also saw its asset and wealth management businesses’ net profit grow by 17% y-o-y to ₹79 crore.

Shares of the company have gained over 57% since the beginning of the year. The stock has risen over 217% in the last one year.