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Motilal Oswal Home Finance Unlisted Shares
Pre-IPO
Finance Company
About Company:
Motilal Oswal Home Finance Ltd. ( MOHF) is a professionally managed company focusing on affordable housing segment, to fulfill the aspirations of lower and middle income (LMI) families. MOHF works on the business philosophy of financial inclusion of LMI families by providing them an access to long term housing finance.
Company Overview
Motilal Oswal Home Finance Ltd. (MOHFL) major focus has been to provide home loans to individuals and families for purchase, construction and extension of house. MOHFL also provides loans for repair and renovation of houses and home loans to families in the new to credit, self-employed, cash salaried category where formal income proofs, Credit Bureaus reports are not easily available, and the repayment capacity of such families are appraised based on their cash flows and Internal Score Cards.
MOHFL had signed a MOU with National Housing Bank (NHB) which is the Central Nodal Agency under the Pradhan Mantri Awas Yojana (PMAY) for the Credit Linked Subsidy Scheme (CLSS). MOHFL has assisted various economically weaker sections of the society to claim subsidy under this scheme.
MOHFL has adopted a risk based pricing methodology. The pricing of each loan is linked to the credit score and credit assessment report. This methodology enables MOHFL to price risk correctly by offering finer interest rates to deserving families, where credit risk is low and charge a higher rate of interest where credit risk is high.
MOHF’s AUM and disbursements grew at a CAGR of 138% and 59% respectively between FY15 and FY18, largely
driven by branch expansion from zero branches in FY15 to 120 branches in FY18
Promoter-Management
Name Designation
Mr. Motilal Oswal Chairman & Non-Executive Director
Mr. Arvind Hali Managing Director & CEO
Mr. Raamdeo Agarawal Non-Executive Director
Mr. Navin Agarwal Non-Executive Director
Mr. Sanjaya Kulkarni Independent Director
Shareholders Pattern
Category of shareholder No. of shares Holding (in %
Promoters (Motilal Oswal group companies) 588,89,20,485 97.94
Others 12,41,17,280 2.06
Total outstanding shares of the company 601,30,37,765 100
Annual Reports
Investing Opportunities
A robust PBT growth of 48% YoY and PAT growth of 73% We witnessed a strong growth in both ROA and ROE at 1.7% and 7.6% respectively.
Disbursements remained muted for the first half of FY21 due to COVID but still the full year disbursement stood at Rs. 273 cr, which was up 42% YoY
The loan book stood at Rs. 3,512 crores across 47,665 families as of March 2021. As on 31st March 2021 Net Worth of Rs. 910 crores, Profit stood at Rs. 40 crores, GNPA – 2.2% and NNPA – 1.5%, Provision coverage – 92%, Capital adequacy – 50%, Cost to Income – 33%
Cost of borrowing for us has come down by 95bps YoY in FY21 at 9.25%. We raised r 1,477 crores in FY21 at 7.5%.
There was strong support from parent (Motilal Oswal Financial Services), total cumulative capital infusion from
sponsor at r 8.5 bn resulting into lower net leverage (Debt/Equity ratio) of 2.8x.