Buy Sell Motilal Oswal Home Finance (Aspire Home Finance) Unlisted Shares

Motilal Oswal Home Finance Limited (Previously Aspire Home Finance Corporation Limited) Unlisted Shares Details – 

Face Value –  Re 1 Per Equity Share
Sector – Housing Finance (NBFC)
ISIN – INE658R01011
Lot Size – 1000 Shares
Current Unlisted Share Price – Rs 10 per equity share (Best rate in industry). All time high rate Rs 15.
CIN – U65923MH2013PLC248741
PAN Number – AAMCA0234H
Registered office – Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400 025

Motilal Oswal Home Finance Limited (Previously Aspire Home Finance Corporation Limited) Pre IPO Unlisted Shares Valuation

At current price of around Rs 10 per share, shares of Motilal Oswal Home Finance are available at market capitalisation of about Rs 6000 crore.

Key Management

Motilal Oswal – Chairman & Non-Executive Director
Raamdeo Agrawal – Director
Navin Agarwal – Director
Vijay Kumar Goel – Chief Executive Officer
Shalibhadra Shah – CFO
Vivek Kannan – COO
Smita Gune – Independent Director
Sanjaya Kulkarni – Independent Director
Rekha Shah – Independent Director

Financial performance of the company

Key financial indicators(audited)
MOHFL FY2020 FY2021 FY2022
Total income 576.4 545.5 526.2
Profit before tax 60.9 90.5 118.3
Profit after tax 39.1 40.2 94.9
Net worth 867.4 909.5 1,007.0
Loan book 3,627.5 3,474.3 3,434.6
Total assets 3,887.4 3,897.6 3,763.0
Return on assets 0.9% 1.0% 2.5%
Return on net worth 4.6% 4.5% 9.9%
Gross gearing (times) 3.46 3.24 2.69
Gross NPA 1.8% 2.2% 1.6%
Net NPA 1.4% 1.5% 0.9%
Solvency (Net stage 3/Net worth) 5.7% 5.7% 3.1%
CRAR 47.5% 50.0% 51.6%

Business Highlights

Aspire Home Finance name changed to Motilal Oswal Home Finance in May 2019. MOHF is registered with National Housing Bank (NHB) under section 29A of the National Housing Bank Act, 1987 as a HFC under section 29A of the National Housing Bank Act, 1987 vide Certificate of Registration No. 05.0111.14 dated May 19, 2014. MOHFL commenced lending operations in May 2014.

MOHFL’s operations are focused on Tier II and Tier III cities or the extended suburbs of metro locations. The portfolio is mostly concentrated in Maharashtra and Gujarat with these two states together accounting for 83% of the overall portfolio as on March 31, 2019. Within Maharashtra, MOHFL has been establishing its presence in cities close to Mumbai and Pune. It has also been increasing its presence in Madhya Pradesh, Tamil Nadu, Karnataka and Rajasthan among other states.

The company has a network of 106 branches, primarily in Maharashtra, Gujarat and Madhya Pradesh. It mainly caters to the lower and middle-income borrower segment for the purchase of affordable residential units with a maximum ticket size of Rs. 40 lakh. It has a presence largely in Tier II and Tier III locations or the extended suburbs of metro locations.

MOHFL’s portfolio is an even mix of financing to both salaried (~52%) and self-employed (~48%) customers. The focus on the housing finance segment will continue over the near to medium term with no immediate plans of foraying into other asset classes like loans against property (LAP), lease rental discounting (LRD) or builder loans.

The promoter company has infused Rs 200 crore in the company in the last two years and is expected to infuse more capital as and when required. The company is targeting the huge market size, and is backed by strong management and good brand image of Motilal group.

Outlook: 

In a major push to the stated objective of ‘Housing For All by 2022’, the government has reduced GST to 1% for affordable housing segment. The lower tax burden on home consumers is expected to push the demand and consumer sentiments in the long-term and benefit companies like MOHFL.

Motilal Oswal Home Finance signs deal with Phoenix ARC – September 2019

Motilal Oswal Home Finance Limited (MOHFL) has entered into an Assignment Agreement dated 30 September 2019 with Phoenix ARC Private Limited, for upfront sale of pool of Non-Performing Assets (NPAs) of the Company. Pursuant to the said agreement, MOHFL has sold pool of NPAs of Rs. 540 crores (having Net Outstanding book value of Rs. 345 crores) and realised cash consideration of Rs. 260 crores from Phoenix ARC Trust.

Phoenix ARC Private Ltd along with Motilal Oswal Finvest Ltd,has invested in security receipts of the Phoenix ARC Trust. Further, this has resulted in significant reduction of the Gross NPA (GNPA) & Net NPA (NNPA) ratios of MOHFL to 1.95% and 1.51% respectively.