The Board of Directors of Motilal Oswal Financial Services Ltd (MOFSL) have approved the Draft Scheme of Amalgamation for merger of Motilal Oswal Securities Ltd (MOSL) with MOFSL and have also approved the slump sale of its existing lending business to its wholly owned subsidiary, which is in the process of being incorporated.

Motilal Oswal Financial Services Ltd (MOFSL) is non-deposit taking systematically important non-banking financial company registered with the RBI under Section 45-IA of RBI Act, 1934 and engaged in lending and investment related activities. It is a well-diversified financial services company focused on wealth creation for all customers, such as institutional, corporate, HNI and retail. The company’s services and product offerings include investment activities, loan against shares, wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity and commodity broking. The current market cap of MOFSL is Rs 18,909 crore.

Motilal Oswal Securities Ltd (MOSL) was incorporated on July 5, 1994. It is a member of BSE Limited (BSE), National Stock Exchange of India Limited (NSE) and Metropolitan Stock Exchange (MSE) acts as a stock broker and executes stock trade on behalf of its clients which include retail customers (including high net worth individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. Besides stock broking, it also offers a bouquet of financial products and services to its client base like distributors of portfolio management schemes, mutual funds, private equity and systematic investment plans (SIPs). It is registered with SEBI in the capacity of Depository Participant, research analyst and investment advisor and with various other authorities like AMFL, CERSAI, KRA Agencies (CVL, Dotex, NDML, CAMS and Karvy). MOSL is a WoS of MOFSL.

Business Verticals of MOFSL

Category Business Primary products and services
Capital Market businesses Broking & Distribution Equity (cash and derivatives), commodity broking and currency, distribution of financial products, depository services, financing (though MOFSL)
Institutional Broking Equity (cash and derivatives) broking, advisory
Investment Banking Capital raising, M&A advisory, domestic IPOs, private equity placements, corporate finance advisory, restructuring, FCCBs and GDRs
Asset-based businesses Public Market Equities Portfolio management services, mutual funds, offshore funds
Private Equity Private equity investment management and advisory, real estate investment management and advisory
Wealth Management Professional money managers, trading, alternate assets, credit solutions, wealth transmission, specialized and ancillary advisory services
Housing Finance Aspire Home Finance Affordable housing finance
Fund-based businesses Fund Based Activities Loan against shares book, sponsor commitments into our own mutual funds, private equity funds and housing finance entity

Business activity of MOSL

  • Stock Broking (Institutional & Retail)
  • The brokerage business activity of MOSL accounts for 77.28% of total revenue of MOSL.

Transaction

Motilal-Oswal-Financial-Services-Merger-1

  • Appointed date is April 1, 2017
  • As this is a WoS merger there is no consideration involved
  • As reported as part of the outcome of the board meeting, the lending business of MOFSL is valued at Rs 50 crore as per valuation report issued by independent chartered accountant.

MOSL has 10 subsidiaries, and following is the financial performance of all 10 WoS of MOSL.

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