According to reports from CNBC TV18, Motilal Oswal Financial Services has approved the issuance of secured, rated, redeemable and listed non-convertible debentures (NCDs) worth up to ₹200 crore through private placement. The issue comprises a base size of ₹40 crore and a green shoe option of ₹160 crore, with the NCDs carrying a five-year tenure.
As reported by CNBC TV18, each NCD will have a face value of ₹1 lakh, and the issue will be made on a private placement basis. The NCDs are proposed to be listed on the National Stock Exchange of India (NSE) and will have a tenure of five years. The date of allotment will be determined by the Board of Directors or its Finance Committee and notified to the stock exchanges.
According to the company's announcement, the principal amount of the NCDs, along with interest due and payable, will be secured by a first-ranking pari passu charge through hypothecation of the company's present and future receivables, subject to specified existing charges. The company will maintain a minimum security cover of 1.00 times the outstanding principal and interest until maturity.
As reported by CNBC TV18, Motilal Oswal Financial Services stated there is no existing delay or default in payment of interest or redemption of principal on its NCDs. The company also confirmed there are no special rights or privileges attached to the instruments and no comments regarding payment defaults or security-related matters.
According to CNBC TV18, shares of Motilal Oswal Financial Services Ltd ended at ₹1,057.00, up by ₹22.00, or 2.13%, on the BSE following the announcement of the NCD issue.
