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Invest in Public Issue

Motilal Oswal Financial Services Limited


Opening Date

Apr 23, 2024

Closing Date

May 07, 2024

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Allotment

First Come
First Serve

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Credit Rating

CRISIL AA/Stable CRISIL Limited

IND AA/Stable India Ratings and Research Private Limited

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Base Issue

₹500 Crores

Greenshoe

₹500 Crores

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Highest Yield

9.70%

Min. Investment

₹10,000

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Issue Details

Essentials

Issue price

₹1,000

Face Value

₹1,000/ NCD

Issue Size

₹1,000 Crores

Minimum Investment

₹10,000 (10 NCDs)

Rating

CRISIL AA/Stable CRISIL Limited

Listing on

NSE and BSE

Issue Opening Date

Apr 23, 2024

Issue Closing Date

May 07, 2024

Mode of Issue

Public Issue

Registrar

Link Intime India Private Limited

Mode of allotment and Trading

Dematerialized

About the Issuer

Motilal Oswal Financial Services Limited is one of the largest full-service brokers in India with highest gross brokerage revenue as of March 31, 2023 amongst players in the broking industry (Source: CRISIL Report). Motilal Oswal Group offers diversified range of financial products and services such as retail broking and distribution, institutional broking investment banking asset management private equity, wealth management and housing finance. The company acts as a stock-broker and commodities broker for clients comprising of retail customers (including high net worth individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. The broking and allied services are offered through their (i) network of over 2,500 Business locations spread across over 550 cities in India as of March 31, 2024.

Competitive Strengths

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One of the largest full-service broker with strong brand equity and track record

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Diversified business model and product offerings across segments

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Client acquisition through direct channel and large network of Business Associates

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Experienced management team with proven execution capabilities

Objectives for IPO Issue

For the purpose of meeting working capital requirement and repayment of existing liabilities as well as General Corporate Purposes.

Source: Shelf Prospectus dated March 23, 2024 and Prospectus dated April 09, 2024

Disclaimer: Invest only after referring to the Shelf Prospectus dated March 23, 2024 and Prospectus dated April 09, 2024

Available Bonds Options

Series I II III IV V VI VII VIII
Frequency of Interest Payment
Annual Cumulative Annual Cumulative Monthly Annual Monthly Annual
Face Value/ Issue Price of NCDs (₹/ NCD)
₹ 1000 ₹ 1000 ₹ 1000 ₹ 1000 ₹ 1000 ₹ 1000 ₹ 1000 ₹ 1000
Tenor
24 months 24 months 36 months 36 months 60 months 60 months 120 months 120 months
Coupon (% per annum)
8.85% NA 9.10% NA 8.97% 9.35% 9.30% 9.70%
Effective Yield (per annum)
8.85% 8.85% 9.10% 9.10% 9.35% 9.35% 9.70% 9.70%
Amount (₹ / NCD) on Maturity
₹ 1000 ₹ 1184.85 ₹ 1000 ₹ 1298.60 ₹ 1000 ₹ 1000 ₹ 1000 ₹ 1000

Allocation Ratios

Particulars Institutional Portion Non-Institutional Portion High Net Worth Individual Investors Portion Retail Individual Investors Portion
% of Issue Size 10% 10% 40% 40%
Base Issue Size (in ₹ crore) 50 50 200 200
Total Issue Size (in ₹ crore) 100 100 400 400

Frequently Asked Questions

What is the Issue Size?

  • ₹ 500 Crores (Base Issue) with an option to retain oversubscription up to ₹ 500 Crores aggregating up to ₹ 1000 Crores

Credit Rating for the NCDs?

  • The NCDs proposed to be issued pursuant to this Issue have been rated CRISIL AA/Stable by CRISIL for an amount of up to ₹1,200 Crores by way of its letter dated February 09, 2024 further revalidated vide their letters dated March 14, 2024 and March 19, 2024.
  • “IND AA/Stable” by India Ratings and Research Private Limited for an amount of ₹1,071.60 crores vide their rating letters dated January 29, 2024 further revalidated vide their letters dated February 23, 2024, March 14, 2024 and March 18, 2024.
  • Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations

Security?

  • The principal amount of the NCDs to be issued in terms of this Prospectus together with all interest due and payable on the NCDs, thereof shall be secured by a first ranking pari passu charge by way of hypothecation on all present and future Receivables of the Company (except those specifically and exclusively charged in favour of existing charge holders as specifically set out, and fully described in the Debenture Trust Deed) such that a minimum security cover of at least 1.20 times (1.20x) of the outstanding principal amounts of the NCDs and all interest due and payable thereon is maintained at all times until the Maturity Date

What is the face value/ Issue Price of the NCDs?

  • Rs. 1,000/- Per NCD

What is the frequency of interest payment?

  • Series V & VII – Monthly Coupon
  • Series I, III, VI & VIII – Annual Coupon
  • Series II & IV - Cumulative

What is the minimum application amount?

  • Rs. 10,000/- (10 NCDs) and in multiple of Rs. 1,000/- (1 NCD) thereafter (for all the options of NCDs either taken individually or collectively)

Modes of Applying?

  • Application through the ASBA Process (for all applicants). Retail Individual applicant may use the UPI mechanism to block funds for application value up to Rs. 5 Lakhs submitted through the app/web interface of the Stock Exchange or through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants)

Who is not eligible to invest in the issue?

  • The following categories of persons, and entities, shall not be eligible to participate in the Issue and any Applications from such persons and entities are liable to be rejected:
  • a) Minors without a guardian name* (A guardian may apply on behalf of a minor. However, Applications by minors must be made through Application Forms that contain the names
  • of both the minor Applicant and the guardian);
  • b) Foreign nationals NRI inter-alia including any NRIs who are (i) based in the USA, and/or, (ii) domiciled in the USA, and/or, (iii) residents/citizens of the USA, and/or, (iv) subject to any taxation laws of the USA;
  • c) Persons resident outside India and other foreign entities;
  • d) Foreign Institutional Investors;
  • e) Foreign Portfolio Investors;
  • f) Non Resident Indians;
  • g) Qualified Foreign Investors;
  • h) Overseas Corporate Bodies**;
  • i) Foreign Venture Capital Funds; and
  • j) Persons ineligible to contract under applicable statutory/ regulatory requirements

Can the application be made on joint names?

  • Applications may be made in single or joint names (not exceeding three). In the case of joint Applications, all payments will be made out in favour of the first Applicant. All communications will be addressed to the first named Applicant whose name appears in the Application Form and at the address mentioned therein

Listing?

  • The NCDs are proposed to be listed on BSE and NSE

Tenor?

  • Series I & II – 24 Months
  • Series III & IV – 36 Months
  • Series V & VI – 60 Months
  • Series VII & VIII – 120 Months

Basis of Allotment

  • Category I (Institutional) - 10 % of the Issue Size
  • Category II (Non-Institutional)- 10 % of the Issue Size
  • Category III (HNI) - 40 % of the Issue Size
  • Category IV (Retail Individual) - 40 % of the Issue Size

Can an applicant trade the NCDs in the market?

  • Yes. The NCDs will be listed on BSE & NSE. The trading of the NCDs shall be in dematerialized form only

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