Motilal Oswal (right) with other officials in Mumbai on Monday. (Fotocorp)

Mumbai, Aug. 13: Motilal Oswal Financial Services is entering the capital market on August 20 with an initial public offering at a price band of Rs 725-825 per share.

The non-banking finance company will raise Rs 216 crore at the lower end of the band and Rs 246 crore at the upper end.

Motilal Oswal offers a range of financial products and services that includes retail wealth management, portfolio management services, institutional broking, venture capital management and investment banking services.

It has 1,200 establishments across 377 cities and towns. These entities are run by the company and its business associates.

Motilal Oswal is a holding company with four subsidiaries — Motilal Oswal Securities, Motilal Oswal Commodities Brokers Private Ltd, Motilal Oswal Venture Capital Advisors Private Ltd and Motilal Oswal Investment Advisors Private Ltd.

Retail wealth management and institutional broking are the focus areas of the company.

In 2006, it diversified into investment banking and venture capital management.

The issue proceeds will be used for supporting growth plans through long-term working capital deployment and an enhanced financing facility for clients.

It will also acquire office space and upgrade technology with the funds.

The IPO comprises an issue of 29,82,710 equity shares of Rs 5 each, to be made through the book-building route.

The issue will open on August 20 and close on August 23. After allowing for a reservation of 142,310 shares for employees, the net issue to the public will be 2,840,400 equity shares.

The total issue will constitute 10.50 per cent and the net issue 10 per cent of the post issue paid-up capital of the company. Citigroup Global Markets India Pvt Ltd is the book-running lead manager to the issue.

Motilal Oswal had 2,38,421 retail equity broking clients at the end of 2006-07, up from 159,091 clients a year ago. It had 4,718 commodity broking clients.

Consolidated revenue of the company stood at Rs 39.12 crore in 2006-07, while consolidated profit was Rs 69.58 crore and consolidated net worth Rs 333.16 crore.

Almost 90 per cent of the business came from retail wealth management and institutional broking.

The rest was provided by the investment banking business, which commenced operations in May last year.