Motilal Oswal Financial Services Limited (MOFSL) has taken a significant step in its financial strategy by approving the issuance of Non-Convertible Debentures (NCDs) worth Rs 500 crore. The decision was made during a Finance Committee meeting held on July 30, 2025, marking a notable development for the company's capital structure.

Key Details of the NCD Issuance

The NCD issuance, approved on a private placement basis, includes the following key features:

Security and Compliance

MOFSL has ensured robust security measures for the NCDs:

• The debentures will be secured by a first ranking pari passu charge on all present and future receivables of the company.
• A minimum security cover of 1.00 times the outstanding principal amounts will be maintained at all times until the maturity date.

The company has confirmed that there are no special rights, interests, or privileges attached to these instruments, and there has been no delay in payment of interest or principal on any existing NCDs.

Regulatory Compliance

In line with regulatory requirements, MOFSL has promptly informed the stock exchanges about the outcome of the Finance Committee meeting. The company's disclosure aligns with the provisions of Regulation 30, 51, and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Conclusion

This NCD issuance represents a strategic move by Motilal Oswal Financial Services Limited to raise funds, potentially to support its business operations and growth initiatives. The successful placement of these NCDs could provide the company with additional financial flexibility in the coming years.

Investors and market participants will likely keep a close eye on how MOFSL utilizes these funds and the impact on its financial performance in the upcoming quarters.

Motilal Oswal Financial Services Limited (MOFSL), a prominent player in the Indian financial services sector, has announced its intention to explore fundraising through the issuance of Non-Convertible Debentures (NCDs). This strategic move aims to bolster the company's capital base and support its ongoing operations and growth initiatives.

Key Highlights

• The Finance Committee of MOFSL's Board of Directors is scheduled to meet on Wednesday, July 30, 2025, to consider and approve the NCD issuance.
• The company plans to issue NCDs on a private placement basis, potentially in multiple tranches.
• This decision aligns with MOFSL's strategy to diversify its funding sources and optimize its capital structure.

Regulatory Compliance

In adherence to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Motilal Oswal Financial Services has duly informed the stock exchanges about the upcoming Finance Committee meeting. This transparency ensures that all stakeholders are kept informed about the company's fundraising plans.

Potential Impact

The proposed NCD issuance could provide Motilal Oswal Financial Services with several advantages:

1. Enhanced Liquidity: The funds raised through NCDs could strengthen the company's liquidity position, enabling it to capitalize on market opportunities and manage its operations more efficiently.
2. Debt Portfolio Diversification: By opting for NCDs, MOFSL can diversify its debt instruments, potentially optimizing its overall cost of capital.
3. Long-term Growth Support: The additional capital could be utilized to fuel the company's expansion plans, invest in technology, or strengthen its market position.

Investor Communication

In a separate announcement, Motilal Oswal Financial Services has also made available the audio recording of its recent earnings conference call, which discussed the company's financial performance for Q1 FY 2025-26. This move underscores MOFSL's commitment to maintaining open and transparent communication with its investors and analysts.

The audio recording of the conference call has been made accessible on the company's official website, allowing stakeholders to gain deeper insights into MOFSL's financial results and future outlook.

As Motilal Oswal Financial Services moves forward with its fundraising plans, market participants will be keenly watching the outcome of the Finance Committee meeting and any subsequent NCD issuances. The success of this initiative could play a crucial role in shaping the company's financial strategy and growth trajectory in the coming years.