Motilal Oswal to Raise Rs 300 Crore via Private Placement of NCDs
Motilal Oswal Financial Services' Finance Committee has approved the issuance of up to 30,000 Non-Convertible Debentures (NCDs) to raise Rs 300 crore. These NCDs are secured, rated, and will be issued on a private placement basis with a face value of Rs 1,00,000 each. The tenure for these senior bonds is set at 3 years, and they will be listed on the National Stock Exchange. This move is aimed at strengthening the company's capital position for its ongoing business operations.
Key Highlights
Issuance of up to 30,000 secured NCDs with a face value of Rs 1,00,000 each.
Total fundraise amount aggregates up to Rs 300 crore via private placement.
The NCDs have a fixed tenure of 3 years and will be listed on the NSE.
Security cover of 1.00x maintained through hypothecation of company receivables.
👀 What to Watch
This is a routine capital-raising activity for a financial services firm; investors should track the cost of debt and its impact on overall margins.
