Motilal Oswal Financial Services Ltd

Capital / Securities

• The Finance Committee approved allotment of 90,000 NCDs aggregating Rs 900 crore.
• NCDs are fully paid, secured, rated, redeemable, listed, senior bonds.
• Face value Rs 1,00,000 per debenture; total issue Rs 900 crore.
• Issue is a private placement under SEBI LODR; Annexure A provides details.
• Issue size includes premium of Rs 63 lakh.
• NCDs to be listed on NSE.
• Tenor: 3 years and 25 days.
• Allotment date: Sep 30, 2026; Maturity: Oct 25, 2029.
• Security: first-ranking pari passu charge over all receivables.
• Minimum security cover maintained at 1.0x.
• Coupon details provided in Annexure I.
• Redemption details described in Annexure I.

SEBI custodian license

• MOCSPL (MOFSL subsidiary) received SEBI custodian license to hold securities.
• Custody allows safekeeping, settlement, corporate actions processing, and regulatory reporting for institutional clients.
• License remains valid continuously from grant date, subject to SEBI Custodian Regulations.
• Expands MOFSL's institutional services footprint.

Timeline and focus

• Operations to commence in Q4 2026, subject to readiness requirements.

Strategic implications

• Regulatory approval enables MOFSL to offer custody to institutional clients including AIFs and pension funds.
• Management frames custody as backbone for growth of India's institutional pools; technology-led execution focus.

Fund raising via NCD issuance

• Finance Committee to consider and approve private placement NCDs in one or more tranches on Sept 24, 2026.

Motilal Oswal Financial Services Ltd: Trading Window closed from Oct 01, 2026 for unaudited financial results for quarter and half year ended Sept 30, 2026; The Trading Window will open 48 hours after the declaration of the said Financial Results.

Rating upgrade

• Ind-Ra upgrades MOFSL and subsidiaries to IND AA+/Stable.
• Short-term ratings on CP programmes affirmed at IND A1+.

Key financial metrics

• Net worth has grown to over ₹14,400 crore.
• Assets Under Advice (AUA) stands at ~₹6.6 lakh crore.
• Leverage remains comfortably below internal threshold; liquidity buffers maintained.

Outlook and implications

• Upgrade reflects stronger business profile and higher recurring fee-based revenue.
• Readiness to access diversified funding should improve cost of borrowing.

Allotment Details

• The Board approved private placement of 7,900 senior NCDs aggregating Rs 79 crore.
• NCDs are fully paid, secured, rated, redeemable, and listed.
• Tenure is five years, allotment on Sep 16, 2026, maturity on Sep 16, 2031.
• NCDs secured by a first-ranking, pari passu charge over all receivables.
• Coupon is Rs 8,700 per debenture annually.
• Redemption equals Rs 1,00,000 per debenture at maturity.
• NCDs are proposed to be listed on NSE.

Key Update

• ESOP allotment of 6,53,980 equity shares approved by the Finance Committee.
• Allocation by scheme: VI 77,000; VII 31,200; VIII 1,69,500; IX 2,03,700; X 1,72,580.
• The new shares rank pari-passu with existing equity.
• Committee meeting time: 01:15 p.m. to 02:10 p.m.

Ratings action

• NCDs (interchangeable with PP-MLDs): IND AA+/Stable; Rs 271.60 crore; upgraded.
• NCDs: IND AA+/Stable; Rs 727.00 crore; upgraded.
• Bank loan facilities: IND AA+/Stable; Rs 400.00 crore; upgraded.
• Commercial Papers: IND A1+; Rs 11,750 crore; affirmed.
• Upgrade from IND AA/Positive to IND AA+/Stable for MOFSL instruments.

Rationale

• Strengthened MOFSL profile via asset and private wealth management growth.
• Increased recurring fee-based income improves revenue stability.
• Diversified product mix supports cross-sell and funding flexibility.
• Earnings remain exposed to capital market volatility and regulatory changes.
• Housing finance (MOHFL) remains smaller; scalability monitorable.
• Liquidity buffers and fungible liquidity across group entities enhance flexibility.

Outlook & sensitivities

• Outlook: Stable.
• Positive triggers: scalable franchise, stable profitability, asset quality.
• Negative triggers: deterioration in market share or liquidity risk.

NCD issuance details

• Fully paid, secured, rated, redeemable, listed senior NCDs.
• Issuance type: Private placement.
• Up to 20,000 NCDs aggregating up to Rs 200 crore.
• Base size Rs 40 crore; oversubscription up to Rs 160 crore under Green Shoe option.
• Face value Rs 1,00,000 per NCD; premium not disclosed.
• Tenure: 5 years; allotment date to be notified.
• Coupon rate per KID; payment terms per KID.
• First ranking pari passu charge on all receivables; minimum 1x security cover.
• Special rights: None.
• No delay or default in payments on existing NCDs.
• NCDs proposed to be listed on NSE.
• Redemption as per KID.

IR meetings

• UBS India Summit 2026 on Sep 11, 2026, in-person.
• Arihant Capital Bharat Connect Conference: Rising Stars on Sep 28, 2026, virtual.
• Discuss investor presentation for the quarter ended June 30, 2026; available on BSE/NSE and company site.
• No unpublished price-sensitive information is proposed to be shared.
• Dates are subject to change due to exigencies.