Motilal Oswal Financial Services Ltd (MOFSL) Approval of ₹300 Crore Non-Convertible Debenture (NCD) Issuance

Executive Summary Motilal Oswal Financial Services Ltd (MOFSL) has announced that its Finance Committee has formally approved a capital-raising initiative via the issuance of Non-Convertible Debentures (NCDs). The company intends to raise up to ₹300 crore through a private placement to bolster its working capital and operational liquidity. Transaction Highlights Instrument Type: Fully paid, secured, rated, redeemable, listed senior bonds (Non-Convertible Debentures). Issuance Mode: Private Placement. Total Issue Size: Aggregating up to ₹300 Crore. Volume: Up to 30,000 NCDs. Face Value: ₹1,00,000 per NCD. Tenure: 3 Years. Listing: Proposed to be listed on the National Stock Exchange of India Ltd (NSE). Security Structure & Risk Profile To ensure investor confidence and credit safety, MOFSL has structured the NCDs with robust security features: Charge: The debentures will be secured by a first-ranking pari passu charge through the hypothecation of the company’s present and future receivables. Exclusions: This charge excludes assets already exclusively charged in favor of existing charge holders. Security Cover: The company mandates a minimum security cover of 1.00x on the outstanding principal and accrued interest effectively maintained until maturity. Creditworthiness & Financial Discipline Management has confirmed the company's strong credit standing, stating: There are no existing delays in interest or principal repayment for current NCD obligations. The company has received no adverse comments regarding payment concerns from regulatory bodies or trustees. Market Reaction Following the announcement, shares of MOFSL on the BSE closed at ₹955.95, reflecting a marginal adjustment of -0.06% (down ₹0.60).