Motilal Oswal Financial Services Limited has informed the Exchange about issue of Securities
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Motilal Oswal Financial Services Limited's Finance Committee has approved the issuance of 50,000 secured, rated, redeemable, listed senior bonds in the form of Non-Convertible Debentures (NCDs) on a private placement basis. The total issue size is Rs. 500 crore, with each NCD carrying a face value of Rs. 1 lakh. The NCDs will carry an interest rate (coupon) of 8.50% per annum and have a tenure of 2 years. They are proposed to be listed on BSE and will be secured by a first-ranking pari passu charge on the company's receivables, maintaining at least 1.00x security cover. No special rights or privileges are attached to the instrument, and there are no existing defaults on interest or principal payments.
The company is raising Rs. 500 crore of debt capital at 8.50% interest for a 2-year period, which will add to its borrowing costs but does not dilute equity shareholders since these are non-convertible instruments. Shareholders should note the increase in debt obligations and watch for how the funds are deployed for business growth.