Motilal Oswal set IPO price band at Rs 725-825/sh

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Motilal Oswal Financial Services (MOFSL), a financial services company focused on wealth creation for all its customers such as institutional and corporate clients, HNI and retail customers, proposes to enter capital markets with an initial public offering (IPO) of 29,82,710 equity shares of Rs 5 each for cash at a price band between Rs 725 and Rs 825 per share with 100% book building process.

The company is going to raise Rs 216.25 crore in lower end of the price band and Rs 246 crore at higher band, as per its DRHP filed with Sebi.

The issue comprises a net issue to the public of 2,840,400 equity shares of Rs 5 each and a reservation of 142,310 equity shares of Rs 5 each for subscription by eligible employees at the issue price. The issue will constitute 10.50% and the net issue will constitute 10.00% of the post issue paid-up equity capital of the company.

The equity shares are proposed to be listed on the BSE and NSE. Citigroup Global Markets India Pvt Ltd is the book running lead manager and Intime Spectrum Registry is the registrar to the issue.

MOFSL is the holding company of Motilal Oswal Securities Limited (MOSL-broking business), Motilal Oswal Commodities Brokers Pvt. Ltd (MOCB-commodity business), Motilal Oswal Investment Advisors Pvt. Ltd (MOIA-investment banking business) and Motilal Oswal Venture Capital Advisors Pvt. Ltd (MOVC-venture capital advisory).

Last year private equity investors New Vernon Private Equity Limited and Bessemer Venture Partners Trust bought a 9.47% stake in the company for Rs 518.9 per share (the face value per share being Rs 5).

Motilal Oswal Financial Services Ltd proposes to infuse funds into MOSL and in MOCB in the form of a subscription for their equity shares, unsecured loan or any combination thereof. Such capital infusion will help strengthen their respective balance sheets and thus enable them to increase trading volumes in the equities and commodities market. MOFSL provides a financing facility to its retail broking customers. MOFSL proposes to enhance this financing facility.