Why should one invest in Motilal Oswal Financial Services Ltd’s Bond IPO?

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Bonds 2024-04-30T16:56:29

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Rahul Rai
2024-04-30T16:56:29 | 2 Mins to read

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Issue Date
April 23 to 7th May 2024
Type of Instrument
Senior, Secured, redeemable NCDs
Listing
Proposed to be listed on BSE
Issue Price
Rs. 1000/ NCD
Minimum Investment
Rs. 10,000/-
Credit Rating
CRISIL AA/ Stable
Yield
8.85%- 9.7% p.a
Tenure
24/36/60/120 months

The bonds are being issued in 8 series- over 4 different tenure with coupon rate ranging from 8.85%-9.7%.

Why should u choose this IPO?

  • Senior Secured Bonds.
  • Favourable Debt to Equity Ratio and Interest Coverage ratio.
  • Coupon rates offered are higher than Bank FD rates (retail investors in higher tax brackets should be wary, very good option for HNIs, Institutional Investors and low tax bracket retail investors.
  • The shorter tenure issues look more favourable over the 120 months issues.
  • MOFSL’s is one of the leading brokers with a diversified business model.
  • Excellent management team with extensive experience.
  • Consistent performer and steady balance sheet history.
  • MOFSL’s 72 branches and 9300 business associates have helped escalate the business rapidly in the last financial year.

Key Financials

Years
Net Worth
Cash and Cash Equivalents
Loans given
Loans (Borrowings and Debt Securities)
Interest Income
Interest Expense
Total Debt to Total Assets
H1FY24
5173.93
3119.42
1965.33
4759.96
368.99
170.44
0.25
2023
4453.54
949.58
1327.82
3735.5
472.91
217.33
0.27
2022
4242.11
1039.55
884.62
2170.93
331.45
162.16
0.20
2021
3616.58
570.23
772.58
2079.93
185.44
127.7
0.23

(Amount in crores)

About Motilal Oswal Financial Services Ltd:

Founded in 2005, MOFSL serves as the flagship company of the Motilal Oswal Group, a prominent provider of capital market services in India. The company, alongside its subsidiaries, provides a wide range of services including broking and distribution, asset and wealth management, portfolio management, private equity, and housing finance.

MOFSL advises over 0.60 crores clients and manages assets totaling ₹4,40,123.09 crores as of December 31, 2023, with a remarkable 31.91% CAGR enhancement since FY 2021. With a history dating back to 1987 and over 37 years of industry experience, MOFSL is registered with regulatory bodies like SEBI, BSE, NSE, MCX, NCDEX, CDSL, NSDL, and others. Strategically positioned across India and internationally, with 7,601 employees, MOFSL is poised to navigate the evolving financial market landscape, providing clients with a seamless trading and investment experience.

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