Mumbai, April 19: Two private equity investors, New Vernon and Bessemer Venture Partners, have scooped up 9.29 per cent equity in Motilal Oswal Financial Services Ltd (MOFSL) for Rs 125 crore at a price of Rs 208 per share.
MOFSL is the holding company of the Motilal Oswal Group. Outfits under its umbrella are Motilal Oswal Securities Limited (MOSL), Motilal Oswal Commodities Broker Private Ltd (MOCBPL), Motilal Oswal Venture Capital Advisors Private Ltd (MOVCAPL) and Motilal Oswal Investment Advisors Private Ltd (MOIAPL).
MOSL is a brokerage catering to both institutional and retail investors. MOFSL, too, has a retail division which offers tips to investors across a whole spectrum of financial services from equities, derivatives and commodity trading to e-broking and depository solutions. Recently, MOFSL acquired three regional brokerages.
Following the placement, Mark Rubin of New Vernon will get a seat on the board of MOFSL.
Motilal Oswal, chairman-cum-managing director of MOFSL, said: “The funds from the sell-off will be deployed in various strategic initiatives, both organic and inorganic, and for working capital purposes.” He said 14 per cent of the company’s equities have been allotted to employees under Esop scheme.
To consolidate its position in securities, MOFSL has plans to enter the investment banking and private equity investment segments. New Vernon is part of New Vernon Capital, a New Jersey-based India focused investment fund set up by former Merrill Lynch Global Executive vice president Arshad Zakaria. New Vernon Capital invests in many long-term assets in India and its clients include university endowments and insurance companies. Since it started operations in October 2004, the fund has raised over $ 1.1 billion for investment in India.
Bessemer Venture Partners is the oldest venture capital and private equity firm in the US. Its list of investments in start-ups, which subsequently went public, include American Superconductor, Ciena, Gartner Group, Ingersoll Rand, International Paper, Maxim, Parametric, Staples, VeriSign, Veritas and W.R. Grace. BVP’s office in India is its first outside the US.
