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Motilal Oswal to hit capital market on 20 August

Motilal Oswal to hit capital market on 20 August
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First Published: Fri, Aug 17 2007. 05 26 PM IST
Updated: Fri, Aug 17 2007. 05 26 PM IST
PTI
New Delhi: Brokerage firm, Motilal Oswal Financial Services said on 17 August it will enter the capital market on 20 August with an issue of 29.82 lakh shares to raise upto Rs 240 crore through its initial public offer.
“The proceeds from IPO would be spent on providing working capital, financing facility for broking customers, additional office space and technology advancement for the firm ,” Motilal Oswal Financial Services chairman and managing director Motilal Oswal said.
The company intends to use the proceeds for various activities by 2008-09, he said.
The 20-year-old broking house, having a network of 1,200 branches across 377 cities and towns, has fixed a price band of Rs725 to Rs825 for each share of Rs5.
IPO constitute 10% of the post issue paid-up capital of the company.
Defending the seemingly high price band, Oswal said the company was valued at Rs1,300 crore one-and-a-half year ago and is now valued at Rs2,000 crore.
Motilal Oswal Financial Services, the holding company, operates through four subsidiaries — Motilal Oswal Securities, Motilal Oswal Commodities Brokers Pvt Ltd , Motilal Oswal Venture Capital Advisors Pvt Ltd, Motilal Oswal Investment Advisors Pvt Ltd.
The issue, which closes 23 August, would be listed at both the BSE and NSE.
The company with 251 institutional clients including 165 FIIs posted a net profit of Rs70 crore for the year ended March 2007 while turnover stood at Rs380 crore.
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First Published: Fri, Aug 17 2007. 05 26 PM IST