Motilal Oswal Fin to raise Rs 1000 cr via NCDs
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New Delhi: Motilal Oswal Financial Services on Monday said it plans to raise up to Rs1,000 crore by issuing non-convertible debentures (NCDs) through public issue.
The company proposes to raise through the Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs1,000 each for an amount up to Rs500 crore (Base Issue Size), with a green shoe option of up to Rs500 crore, cumulatively aggregating up to Rs1,000 crore. There are eight series of NCDs carrying fixed coupons and having a tenure of 24 months, 36 months, 60 months, and 120 months with annual, monthly and at maturity interest options. Effective annual yield for NCDs ranges from 8.85 per cent to 9.70 per cent per annum, Motilal Oswal Financial Services said in a regulatory filing.
At least 75 per cent of the funds raised through this issue will be used for the purpose of meeting working capital requirement and repayment of existing liabilities and the balance amount would be utilised for general corporate purposes, it said.
