Motilal Oswal Financial Services To Raise Rs 1,000 Crore

Motilal Oswal Financial Services plans to raise up to Rs 1,000 crore through non-convertible debentures through public issue. Majority of the amount raised will go towards meeting working capital requirement and repayment of existing liabilities.

The company proposes to raise through the Secured Redeemable Non-Convertible Debentures of the face value of Rs 1,000 each for an amount up to Rs 500 crore (Base Issue Size), with a green shoe option of up to Rs 500 crore, cumulatively aggregating up to Rs 1,000 crore.

There are eight series of NCDs carrying fixed coupons and having a tenure of 24 months, 36 months, 60 months, and 120 months with annual, monthly and at maturity interest options.

Effective annual yield for NCDs ranges from 8.85% to 9.70% per annum, Motilal Oswal Financial Services said in a regulatory filing.

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