Issue of Non-Convertible Debentures
Motilal Oswal Financial Services Limited has issued by way of Private Placement 2500 Principal Protected Secured Redeemable Non-Convertible Debentures of the face value of Rs. 100,000 each Linked to S&P CNX NIFTY INDEX, with marketable lot of one, for cash aggregating Rs 25 Crore .
The Salient features and Valuation is given below:

Issuer

Motilal Oswal Financial Services Limited

Valuation of the Debentures (by ICRA)

Please click on the Link below:
http://www.icra.in/mld-valuations.aspx

Underlying Index

S&P CNX Nifty

Issue Amount

Rs. 250,000,000

No    of   Debentures, Issue Price   and Face Value

2500 Debentures having a Face Value of Rs. 100,000 each will be issued for cash at par.

Tenor

 3years and 3 months & 20 days from the Date of Allotment.

Coupon rate

Coupon rate will be reference Index linked return over the tenure of debenture.
Reference Index Linked Return =
Debenture Face Value* Reference Index Return Factor
Coupon shall be payable on Redemption/Maturity Date

Listing

At WDM Segment of BSE

Debenture Trustee

IDBI Trusteeship Services Limited

Registrar & Transfer Agent

Link Intime India Private Limited

Security

The Debenture repayment, coupon thereon, Trustees’ remuneration and all other monies relating thereto shall be secured by way of loan receivables. The value of loan receivables is determined based on the net exposure outstanding and be reviewed on an  annual basis with a minimum asset cover ratio of 1.5 times at all times during the tenure of the NCDs, to be decided in consultation with the Trustees. The above mentioned security will be created in favour of the Trustees within 3 months from the issue closure of the Debentures or such extended period as may be permissible. The actual form, mode and method of security creation shall be decided in mutual consultation with the Trustees. The Company shall at all times in consultation of the trustees maintain a minimum security cover of 1.5. times of the value of all the outstanding Debentures proposed to be issued by the company.
The Security will be created by the Company as aforesaid in favour of the Trustees on such of the assets for which the Company obtains, the requisite consents and permissions applicable under law or in accordance with conditions of holding of such assets for creating the above mentioned charge.

In case of delay in execution of Trust Deed and Charge documents, the Company will refund the subscription forthwith with agreed rate of interest or will pay penal interest of atleast 2% p.a over the coupon rate till these conditions are complied with at the option of the investor.

Issue Opening Date

10th  December, 2012

Issue Closing Date

10th December, 2012

Pay in date

10th December, 2012

Date of Allotment

11th December, 2012
In case of delay in listing of the debt securities beyond 20 days from the date of allotment, the company will pay penal interest of atleast 1% over the coupon rate from the expiry of 30 days from the date of allotment till the listing of such debt securities to the investor.

Put Option

 Put Option to investor

Scheduled Valuation Date

31st December, 2015, subject to Modified Following Business Day Convention as defined by ISDA Definitions 2000. Or any date within 30 days of exercise of Put Option Effecting Early Redemption

Redemption     /     Maturity Date

  31st  March, 2016.  Put Option can be exercised after 18 months from date of allotment.

Trading

Dematerialized mode

ISIN

INE338I07016

Start Reference Index  Value

Closing Value of S&P CNX Nifty on the date of allotment

Credit Rating (by ICRA)

  PP-MLD[ICRA]AA-  

Reference Index Linked Return payable on Redemption Date and paid with the Redemption Amount:

 

Redemption Amount:

The Reference Index Linked Return shall be the only coupon due  which shall be payable only on redemption date and shall be calculated as per the following:
Reference Index Linked Return shall be =
Debenture Face Value* Reference Index Return Factor

Reference Index Return Factor =
Max [0%, 115%* {(Observation Value of the Reference Index / Start Reference Index Value) – 100%}]

115% is the  participation rate

Observation Value of the Reference Index  shall Mean  Closing Value of CNX Nifty on scheduled valuation date for redemption