Motilal Oswal hopes to raise Rs 246 cr via maiden float

Motilal Oswal Financial Services will raise up to Rs 246.07 crore through an initial public offer (IPO) of close to 3 million equity shares (nearly 30 lakh), priced in a band of Rs 725 to Rs 825 a share. The issue opens on August 20 and closes on August 23.

Motilal Oswal is the holding company of Motilal Oswal Securities (stock broking), Motilal Oswal Commodities Brokers, Motilal Oswal

Investment Advisors (investment banking) and Motilal Oswal Venture Capital Advisors (private equity-cum venture fund). "The price band has been fixed after considering the response that the issue received subsequent to the pre-market placement, the valuation of the company and the current market volatility," said Raamdeo Agrawal, managing director, Motilal Oswal Financial Services.

The financial services firm will utilise the proceeds from the issue to improve its competitive position and support its growth plans through long-term working capital deployment, an enhanced financing facility for broking customers, additional office space and technology advancement. The total issue will constitute 10.5 per cent and the net issue will constitute 10 per cent of the post-issue paid-up capital of the company. Motilal Oswal's consolidated revenue as on March 31, 2007, was Rs 379.12 crore and net profit was Rs 69.6 crore.

Citigroup Global Markets India is the lead manager to the issue.