Motilal Oswal places 9.29 pc equity with New Vernon and Bessemer

Mumbai, Apr 19 (UNI) Leading brokerage firm Motilal Oswal Financial Services Ltd (MOFSL) today announced its equity placement with two of the leading foreign private equity investors-New Vernon Private Equity Limited and Bessemer Venture Partners.

MOFSL has placed 9,29 per cent equity for a consideration of Rs 125 crore with New Vernon and Bessemer Venture in the ratio of 72:28, said MOFSL CMD Motilal Oswal.

''The funds so raised will be deployed for various strategic initiatives, both organic and inorganic, and working capital requirements,'' said Mr Oswal.

The above equity sale was a precursor to the company going public to raise money from the markets, admitted Mr Oswal while answering a question, but not during the year 2007, he added.

MFOSL has plans to take its market share from 4 per cent to 10 per cent by 2010, said MOFSL MD Raamdeo Agrawal.

MFOSL would also be shortly commencing the business of investment banking services and private equity investment to further consolidate its position in the securities business, added Mr Agrawal.

The retail business unit of MOFSL provides equity investment solutions to more than 161,000 clients through 1000 outlets in 375 cities across India.

The company provides advice-based broking in equities and derivatives, portfolio management services, e-broking, depository services, commodities trading, IPO and mutual fund investment advisory and distribution services.

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