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Motilal Oswal Financial Service Limited (“MOFSL”/ “Company” / “Issuer”), has announced the opening of the public issue of Secured Redeemable Non-Convertible Debentures (“NCDs”) of the face value of Rs 1,000 each for an amount up to Rs 500 crore (“Base Issue Size”), with a green shoe option of up to Rs 500 crore, cumulatively aggregating up to Rs 1,000 crore (“Issue”).

There are eight series of NCDs carrying fixed coupons and having a tenure of 24 months, 36 months, 60 months, and
120 months with annual, monthly and at maturity interest options. Effective annual yield for NCDs ranges from 8.85% p.a. to 9.70% p.a.

The Issue is scheduled to open on April 23, 2024, and close on May 7, 2024^**

At least 75% of the funds raised through this Issue will be used for the purpose of meeting working capital requirement and repayment of existing liabilities and the balance amount would be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, as amended from time to time (“SEBI NCS Regulations”).

The NCDs proposed to be issued under the Issue have been rated “CRISIL AA/Stable” by CRISIL Ratings and “IND AA/Stable” by India Ratings. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited^# are the Lead Managers to the Issue. The NCDs are proposed to be listed on BSE and NSE. The Company has received an in-principle’ approval from BSE and NSE. For the purposes of this Issue, BSE shall be the Designated Stock Exchange.

^#Motilal Oswal Investment Advisors Limited is deemed to be an associate of the Issuer, as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, Motilal Oswal Investment Advisors Limited would be involved only in marketing of the Issue and as per Regulation 25 (3) of
SEBI NCS Regulations and shall not issue a due diligence certificate.

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