Motilal Oswal Unveils ₹1,000 Cr NCD Public Issue!

New Delhi: Motilal Oswal Financial Services Limited (MOFSL) has initiated the public offering of Secured Redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,000 each, totaling up to ₹500 crore as the Base Issue Size. An additional ₹500 crore through a green shoe option is available, resulting in a cumulative offering of up to ₹1,000 crore.

This issuance comprises eight series of NCDs, offering fixed coupons and ranging tenures of 24, 36, 60, and 120 months. Interest payment options include annual, monthly, and at maturity. The effective annual yield for the NCDs spans from 8.85% p.a. to 9.70% p.a.

Scheduled to commence on April 23, 2024, the Issue will conclude on May 7, 2024. Seventy-five percent of the raised funds will cater to working capital needs and debt repayment, with the remainder allocated for general corporate purposes, limited to 25% of the total raised, aligning with SEBI NCS Regulations.

The NCDs offered in this Issue have secured ratings of “CRISIL AA/Stable” by CRISIL Ratings and “IND AA/Stable” by India Ratings, indicating a high degree of safety in terms of fulfilling financial obligations and minimal credit risk.

Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and Motilal Oswal Investment Advisors Limited are the Lead Managers, overseeing the Issue. Post-issuance, the NCDs will be listed on both BSE and NSE, with the Company having secured approval from both exchanges. BSE will serve as the Designated Stock Exchange for this Issue.