Motilal Oswal Financial to raise funds via maiden public issue, bankers say

India's Motilal Oswal Financial Services plans to raise up to 10 billion rupees ($120 million), including a greenshoe of 5 billion rupees, through its maiden public issue of bonds, three bankers said on Tuesday.

The issue opened for subscription on Tuesday and will close on May 7, they said.

The financial services company is offering bonds maturing in 24 months, 36 months, 60 months and 120 months at annual coupon rates of 8.85%, 9.10%, 9.35% and 9.70%, respectively.

Around 75% of the proceeds will be used to meet working capital requirements and repay existing liabilities, with the balance to be used for general corporate purposes, bankers said.

CRISIL and India Ratings have rated the bonds "AA".

The company has allotted 40% of the issue size each for high networth individuals and retail investors, and 10% each for institutional and non-institutional investors.

Trust Investment Advisors, Nuvama Wealth Management and Motilal Oswal Investment Advisors are the lead managers for this issue.

($1 = 83.3322 Indian rupees)