Motilal Oswal allots ₹79 crore in 5-year secured NCDs at 8.7% coupon
- Motilal Oswal Financial Services allotted ₹79 crore in secured NCDs via private placement
- Instruments carry an 8.7% annual coupon with a 5-year tenure maturing in 2031
- Debt is secured by a first-ranking charge over company receivables
- Minimum security cover of 1.00x outstanding principal must be maintained
- No defaults reported on existing NCD obligations
*this image is generated using AI for illustrative purposes only.
Motilal Oswal Financial Services allotted ₹79 crore worth of non-convertible debentures (NCDs) through a private placement on September 16, 2026. The Finance Committee of the Board approved the issuance during a meeting held that day.
The company issued 7,900 fully paid, secured, rated, redeemable, listed senior bonds. Each bond carries a face value of ₹1,00,000. The instruments will be listed on the National Stock Exchange of India Limited (NSE).
Issue Structure and Terms
The NCDs have a tenure of five years, maturing on September 16, 2031. The coupon rate is fixed at 8.7% per annum, payable annually. Interest payments are scheduled for September 16 each year from 2027 until maturity. The principal amount will be repaid in full upon redemption in 2031.
| Parameter | Details |
|---|---|
| Total Amount | ₹79 crore |
| Face Value per Bond | ₹1,00,000 |
| Coupon Rate | 8.7% p.a. |
| Tenure | 5 Years |
| Maturity Date | September 16, 2031 |
| Listing Venue | NSE |
Security and Compliance
The debt instruments are secured by a first-ranking, pari passu charge by way of hypothecation over all present and future receivables of the company. This security excludes receivables specifically charged to existing holders. The company is required to maintain a minimum security cover of 1.00 times the outstanding principal amount plus accrued interest until maturity.
The filing confirms there is no delay or default in the payment of interest or principal on any existing NCDs. No regulatory letters or comments regarding payment defaults were received. The issuance complies with Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as well as the SEBI Master Circular dated July 11, 2023.
Historical Stock Returns for Motilal Oswal Financial Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.58% | -7.27% | +7.90% | +43.34% | +3.65% | +401.90% |
How will the ₹79 crore infusion from this NCD issuance impact Motilal Oswal's debt-to-equity ratio and overall leverage profile over the next five years?
What specific strategic initiatives or business expansions is Motilal Oswal likely to fund with these proceeds given the current competitive landscape in Indian wealth management?
Considering the 8.7% fixed coupon rate, how does this issuance compare to prevailing market yields for similar-rated financial sector bonds, and what does it signal about investor appetite?
17
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
