Motilal Oswal allots ₹900 cr NCDs at 8.64% coupon for 3-year tenure
- Motilal Oswal Financial Services allotted 90,000 NCDs worth ₹900 crore on September 30, 2026
- The issue was fully subscribed with a total premium of ₹63,00,000 received by the company
- Bonds carry an effective coupon rate of 8.64% per annum with a tenure of 3 years and 25 days
- Securities are secured by a first-ranking pari passu charge on the company's receivables
*this image is generated using AI for illustrative purposes only.
Motilal Oswal Financial Services has allotted Non-Convertible Debentures (NCDs) worth ₹900 crore through a private placement. The allotment was approved by the Finance Committee of the Board on September 30, 2026, following the initial approval in September.
The issue comprises 90,000 fully paid, secured, rated, redeemable, listed senior bonds with a face value of ₹1,00,000 each. The securities were issued at a premium aggregating to ₹63,00,000 and are proposed to be listed on the National Stock Exchange of India Limited.
Allotment Details
The Finance Committee finalized the allotment during its meeting held on September 30, 2026. The disclosure was signed by Kailash Purohit, Company Secretary and Compliance Officer.
| Event | Details |
|---|---|
| Meeting Type | Finance Committee of the Board of Directors |
| Date of Allotment | September 30, 2026 |
| Total Amount | ₹900 crore |
| Number of Bonds | 90,000 |
| Face Value | ₹1,00,000 per bond |
| Premium Received | ₹63,00,000 |
| Tenure | 3 Years and 25 days |
| Maturity Date | October 25, 2029 |
Security and Terms
The NCDs are secured by a first ranking pari passu charge by way of hypothecation on all present and future receivables of the company. This security excludes receivables specifically charged in favour of existing charge holders as described in the Debenture Trust Deed. The company maintains a minimum security cover of at least 1.00 times of the outstanding principal amounts and interest due until maturity.
The coupon rate is specified as an effective rate of 8.64% per annum. Interest payments are scheduled annually, with the first coupon payment due on October 25, 2026, and subsequent payments on October 25 of each year until maturity. The General Information Document dated September 17, 2025, and the Key Information Document dated September 24, 2026, govern the terms. There are no special rights or privileges attached to the instrument.
Compliance Status
The disclosure confirms that there is no delay or default in the payment of interest or redemption of principal on due dates for any existing NCDs issued by the company. No letters or comments regarding payment issues or asset security matters have been received from regulatory authorities.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE338I01027/a10a977a-d8eb-403b-a860-c803ed9d2b82.pdf
Historical Stock Returns for Motilal Oswal Financial Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.50% | +4.27% | +6.74% | +33.69% | +3.76% | 0.0% |
How will the ₹900 crore capital infusion specifically impact Motilal Oswal's lending book growth targets for the upcoming fiscal year?
What is the expected impact of the 8.64% coupon rate on the company's net interest margin (NIM) given current interest rate trends in India?
Will the hypothecation of receivables as security restrict Motilal Oswal's ability to raise further secured debt in the near term?
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