Motilal Oswal Allots ₹500 Crore via NCDs; 2-Year Bonds Listed on BSE

Mumbai, August 6, 2025 — Motilal Oswal Financial Services Limited (MOTILALOFS) has approved the allotment of ₹500 crore worth of fully paid, secured, rated, redeemable, and listed non-convertible debentures (NCDs) through a private placement route.

NCD usually means Non-Convertible Debentures. This is a variety of fixed-income security that companies offer to raise capital.

Impact on Investors

The movement in financial strategy will offer investors a fixed annual return of 8.5% and offer the safety of principle, which are attractive characteristics from a very low-risk income investment option that is below 10% total return and cash flows that are predictable over the term of the investment issue, two years.

Key Details of the Issue

A total of 50,000 fully subscribed, secured, redeemable Non-Convertible Debentures (NCDs) have been issued at par via private placement, with a face value of ₹1,00,000 each, for an aggregate value of ₹500 crores. However, the premium for the same has been received for ₹3.50 lacs. The allotment date is August 6, 2025, and these NCDs will mature on August 6, 2027, as these bonds carry a tenure of two years.

These NCDs are proposed to be listed on BSE. They are secured with a pari passu charge on the present and future receivables (not required to be pledged) with an expected minimum 1.00x security cover of outstanding principal and interest throughout the tenure.

Payment Structure (Per NCD)

Every NCD has a coupon of 8.5% annually and pays once. At the time of allotment (August 6, 2025), investors receive ₹1,00,000 per debenture. An interest payment of ₹8,500 is paid on August 6, 2026. At maturity, August 6, 2027, investors receive the final coupon at ₹8,500, plus the total principal amount of ₹1,00,000. Each payment will follow the applicable business day conventions and comply with all applicable regulations. Therefore, all cash flows are known, transparent, and expected with reasonable accuracy over the two-year period.

Additional Disclosures

• There have been no reported delays or defaults in the payment of interest or principal for any existing NCDs.
• No special rights or privileges are attached to these instruments.
• No comments or observations were received from debenture trustees or other authorities regarding payment performance.

Motilal Oswal Financial Services Share Price Movement

As of August 6, 2025, at 3:30 PM IST, the Motilal Oswal share price was valued at ₹922.30, up ₹11.55 (1.26%) from its last close. Its share price is down 2% this week, but the company has sustained strong longer-term momentum with about a 38% gain over 3 months and 55% appreciation in the past 12 months.

REF: https://nsearchives.nseindia.com/corporate/MOTILALOFS_06082025120759_MOFSL_NCD_Allotment_06082025.pdf

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