Motilal Oswal Hime Finance Unlisted Shares Details:

About Motilal Oswal Home Finance Limited:

Motilal Oswal Home Finance (previously Aspire Home Finance Corporation Limited) is a professionally managed housing finance company incorporated on 1^st October,2013, with a unique combination of financially sound and technically experienced promoters who are well known in their domain for professional ethics and strong execution capabilities.

Motilal Oswal Home Finance works on the business philosophy of financial inclusion of Lower and Middle Income (LMI) Indian families by providing them access to long term housing finance. Motilal Oswal Home Finance is a subsidiary of Motilal Oswal Financial Services Limited (MOFLS). MOFLS is a well – diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI, and retail.

To whom Motilal Oswal Home Finance Ltd. (MOHFL) lends?

a.     It provided home loans to individuals and families for purchase, construction, and extension of the house.

b.     It 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.

Underwriting:

In the business of lending, underwriting is the single most parameter which one should look in order to make an investment in the company. Underwriting is a process of distribution of loans. If the company has a robust process for underwriting, then chances of NPAs get reduced considerably. Now, let us see how MOFH does underwriting?

a.     The loan approval process at MOHFL is in 4 layers of an approval process based on the ticket size of the loan.

b.     Approvals of lending proposals are carried out by various authorities from Cluster Credit Head to National Credit Head.  Approvals beyond certain limits are referred to as the Chief Operation Officer. An additional layer of in house legal
and technical makes the underwriting process more robust.

c.     There is a Dedicated Risk Containment Unit (RCU) in the Company to minimize fraud related to income documents, profiles, and collateral.

Borrowing:

Lending is a business where we need money to give money. MOHF first arranges money and then distributes it to the people in the economy to buy a new house or reconstruct. Now, how MOHF arranges fund?

a.     From banks by a way of term loan.

b.     NCD by issuing commercial paper

Journey of Motilal Oswal Home Finance:

2014:

a.     Commencement of Business Operation on 22.05.2014.

b.     The first disbursement booked in Akola Branch in June 2014.

c.     The loan book crossed 50 Cr.

2015:

a.     Presence across 14 locations.

b.     Total staff: 160 employees.

c.     Loan book at 357 Cr with 3565 live accounts.

d.     Year-end PAT at 18 Cr CRISIL upgrades rating for long term borrowings from “A/Stable” to “A+/Stable“ Loan book crosses 550 Cr with 5,500 Cr live loan accounts Present at 23 locations.

2016:

a.     Present in 51 Locations with employees count of 500.

b.     PAT for the years at 40 Cr.

c.     Received the first 50 Brand 2016 award by WCRC.

d.     Presence extended to 62 locations.

2017:

a.     Awarded second prize for best performing Primary Lending Institution under CLSS for EWS/LIG by the Ministry of Housing and Urban Poverty Alleviation.

b.     Expanded to 6 new states with a presence in 121 locations with a staff count of 1049.

c.     loan Book of 4165 Cr with 46,142 live accounts.

2018:

a.     4682 Cr of the loan book.

b.     Capital Infusion by MOSFL of Rs. 150 Cr.

c.     Strengthening of a core team.

d.     Strengthening Credit & Risk

Financials of Motilal Oswal Home Finance Limited Unlisted Shares:

(Fig. in Crores)

Shareholding Pattern as on 31.03.2020  

Promoters And Management:

(i)              MR. MOTILAL OSWAL, Chairman

Mr. Motilal Oswal is the Chairman and Managing Director of Motilal Oswal Financial Services Ltd. (MOFSL). He is a Chartered Accountant and started the business along with co-promoter, Raamdeo Agrawal in 1987. Oswal has served on the Governing Board of the BSE, Indian Merchant’s Chamber (IMC), and has also served on various committees of BSE, NSE, SEB, and CDSL. He is the President of the Jain International Trade Organization (JITO) and has been awarded the Rashtriya Samman Patra by the Government of India for being amongst the highest-income taxpayers in the country for a period of 5 years.

(ii)            MR. RAAMDEO AGRAWAL, Director

Mr. Raamdeo Agrawal is a Chartered Accountant and the Joint Managing Director of Motilal Oswal Financial Services Limited (MOFSL) and also the co-founder of Motilal Oswal Securities Limited. He is the man behind the strong research capabilities at Motilal Oswal Financial Services Ltd. A keen believer and practitioner of the QGLP philosophy, his wealth creation insights, and decades-rich experience have played a pivotal role in MOFSL, transforming it from a small stockbroking firm to a well-diversified financial services company.

(iii)          Mr. Navin Agarwal, Vice Chairman

He is the Managing Director of Motilal Oswal Financial Services Limited. He is responsible for the Institutional Broking & Investment Banking Businesses and has been instrumental in building a market-leading position in the Institutional Broking business. Under his leadership, the firm has been rated as The Best Indian Brokerage House by Asiamoney. Leveraging on the dominant

HOUSING FINANCE (A Motilal Oswal Group Co.)