Motilal Oswal Financial Services Allots ₹900 Crore of NCDs Through Private Placement

The Motilal Oswal Financial Services has allotted non-convertible debentures amounting to ₹900 crore through a private placement after approval from the finance committee of the board on September 30, 2026. 

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The Motilal Oswal Financial Services has allotted 90,000 bonds which are secured, rated, redeemed and listed senior debentures where each bond will have a face value of ₹1 lakh. 

There was no shortfall and the issue was completely subscribed. Although the total face value amounts to ₹900 crore, there was also a premium on the bond that amounted to ₹63 lakh. 

The debentures are expected to be listed at National Stock Exchange of India. 

These bonds will have a maturity period of three years and 25 days. The bonds were allotted on September 30, 2026 and will mature on October 25, 2029. 

Taking into consideration the sample cash flow provided by the organization, it may be concluded that the effective coupon rate for the annual payments is 8.64%. For each ₹1 lakh debenture, a coupon payment of ₹589.73 is scheduled for October 25, 2026, reflecting the shorter initial period after allotment. 

This is followed by indicative coupon payments of ₹8,640 each on October 25 in 2027, 2028 and 2029. The ₹1 lakh principal is scheduled to be repaid on October 25, 2029. 

How the bonds are secured 

The debentures are backed by a first-ranking, pari passu charge over the company’s present and future receivables, barring receivables that have already been specifically and exclusively charged in favour of existing charge holders. 

Motilal Oswal Financial Services is required to maintain a minimum security cover of one time the outstanding principal on the NCDs, along with the interest due and payable, until maturity. 

The company also stated that there has been no delay or default in the payment of interest or repayment of principal on the due dates of any of its existing NCDs. 

The Finance Committee meeting that approved the allotment began at 10:15 am on September 30 and concluded at 10:40 am.