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

(i) Motilal Oswal Home Finance ( previously Aspire Home Finance Corporation Limited ) is a professionally managed housing finance company incorporated on 01.10.2013, 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.

(ii) 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 (MOFSL). MOFSL 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.

Presence as on 31.03.2020:

MOHFL is operating in nine states – Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Rajasthan, Chhattisgarh, Tamil Nadu, Telangana, and Andhra Pradesh. MOHFL now has 110 Branches across these nine states.

Loan book size as on 31.03.2020?

MOHFL’s total outstanding loans in FY20 stood at R 3,667 crores. Loan book has reduced as compared to last year on account of sale of NPA book to ARC during the year. NPA and write off a pool of Rs 595 crores for consideration of Rs 293 crores at 50% haircut which has also resulted in lower NPAs as well as a reduction in the loan book.

Underwriting:

In the business of lending, underwriting is the single most parameter which one should look in order to make 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 MOHF 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 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.

MOHFL total borrowings as of March 31, 2020, of Rs 2,954 crores. And, the cost of borrowing in FY20 at 10.16%.

A journey of Motilal Oswal Home Finance

2014:
(i) Commencement of Business Operation on 22.05.2014.
(ii) The first disbursement booked in Akola Branch June 2014.
(iii) Loan book crossed 50 Cr.

2015:
(i) Presence across 14 locations.
(ii) Total staff: 160 employees.
(iii) Loan book at 357 Cr with 3565 live accounts.
(iv) 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:
(i) Present in 51 Locations with employees count of 500.
(ii) PAT for the years at 40 Cr.
(iii) Received first 50 Brand 2016 award by WCRC.
(iv) Presence extended to 62 location.

2017:
(i) Awarded second prize for best performing Primary Lending Institution under CLSS for EWS/LIG by Ministry of Housing and Urban Poverty Alleviation.
(ii) Expanded to 6 new states with a presence in 121 locations with a staff count of 1049.
(iii) loan Book of 4165 Cr with 46,142 live accounts.

2018:
(i) 4682 Cr of the loan book.
(ii) Capital Infusion by MOSFL of Rs. 150 Cr.
(iii) Strengthening of a core team.
(iv) Strengthening Credit & Risk

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

Total Available Shares:	Not Available
Face Value:	₹ 1 Per Equity Share
ISIN:	INE658R01011
Lot Size:	500 Shares
Current Unlisted Share Price:	₹ Best in industry Per Equity Share
Retail Discount:	Bulk Deal (1%)

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

Financials of Motilal Oswal Home Finance Limited (Previously Aspire Home Finance Corporation Limited) Unlisted Shares:

( Fig. in Crs )

Particulars	2017	2018	2019	2020
Revenue from operations	570	662	648	576
Expense	445	613	859	515
PAT	82	31	-136	39
Book Value	1.31	1.5	1.37	1.44
Face Value	1	1	1	1

Key Highlights of FY17-18 (i) Loan book- 4,863,+17% YoY (ii) NIM – 4.1% NNPA-3.3% (iii) Provision Coverage – 35%. (iv) Debt to equity - 4.9x. (v) Cost to income - 38%. (vi) Capital adequacy - 38% Key Highlights of FY18-19 (i) They cater to pure-retail affordable housing space through Motilal Oswal Home Finance (previously known as Aspire Home Finance Corporation). (ii) During the year, they concentrated efforts on re-building the home finance business in terms of processes, systems, manpower, and structure to strengthen the business. As a result, they have followed a conservative approach in disbursements which stood at Rs 290 crores in FY2019. (iii) The loan book stood at Rs 4,357 crores across 52,000+ families as of Mar 2019. (iv) The average ticket-size continued to be lower at Rs 8.5 lakhs in FY2019. They have put in place a vertical organization structure comprising sales, credit, collection, and legal team. (v) The implementation of the cluster-level credit layer along with 5 layer credit approval system based on loan ticket sizes and differentiated pricing methodology for loans based on risk type should likely result in improved underwriting, going forward. (vi) Macro-economic events like demonetization, RERA, and GST and absence of the collection engine coupled with a lack of vertical structure earlier led to a surge in NPAs. This year they have written off loans worth Rs. 290 crore in FY2019 as a conservative policy. They are expecting the recoveries from write off the pool, given the robust collections and legal team now in place. (vii) Motilal Oswal Group has infused Rs 200 crores during the year and this takes the total capital infused to Rs. 850 crores. (viii) There ~57% of the borrowings come from the capital markets in the form of NCDs and ~43% from banks. Key Highlights of FY19-20 (i) The loan book stood at 3,667 crores across 47,900 families as of March 2020. (ii) In FY20, MOHF has sold assets worth 595 cr to Phoenix ARC for consideration of 293 cr this has resulted in a significant reduction of the GNPA & NNPA rates to 1.81% and 1.36% respectively. This has resulted in getting funds at a lower cost. (iii) The company this year has boosted its all 4 verticals which are pillars in the lending business i.e. sales, credit, collection, and legal. Currently, they have 430 employees in these verticals. They have also learned from the past and working vigorously to streamline their underwriting. (iv) MOHFL also received credit rang upgrade amid challenging environment based on several positive changes undertaken. CRISIL has upgraded MOHFL’s rang to AA- (stable) from earlier A+ (stable). (v) In FY19-20, the MOHF has distributed loan worth Rs 190 crores for home purchase, construction, repair, and renovation. The disbursement of loans has been done with collateral first policy and after passing through several stringent checks and balances. This shows that the company is putting lot of effort into underwriting, to reduce NPAs in the future. MOHF Annual Report FY 19-20

Company Address:

Aspire Home Finance Corporation Ltd., Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai- 400025

Discussion on Motilal Oswal Home Finance Limited (Previously Aspire Home Finance Corporation Limited) Unlisted Shares:

What is the current price and lot size?

At present Motilal Oswal Home Finance shares are available at Rs. 9 per share for minimum 1,000 shares. For more information please drop an email at sales@unlistedzone.com.

The current valuation still seems to be on the higher side. However, the company is performing well for the last 2 years.

Key Highlights of Motilal Oswal Home Finance for FY19-20.

https://dyvmwwyqozzzb.cloudfront.net/main/Annual-Report-Inner-Page-24-April-Main-Page-VSTS.cdr_.pdf

Motilal Oswal Home Finance reported profit of Rs. 21.4 Cr in 9 months of FY 20 and Rs. 16.1 Cr in 3rd Quarter.

* Margins have improved to 5.2% in 9 months, on account of improvement in yield and lower cost of funds.

* Loan book stood at Rs. 3,779 Cr as. Disbursements in 9 months were Rs. 146 Cr. New book sourced from April’18 validates the new credit policy with 11 cases in NPA out of 4500 loan cases.

* CRISIL has upgraded MOHFL’s rating to AA-(stable outlook) from earlier A+(stable). This will further benefit MOHFL in bringing down cost of funds and improve spreads.

* Strong support from parent continues with total capital infusion to Rs. 850 Cr. Net Gearing Stands at 3.4x.

* Limited borrowing repayment for next 1 year, strong undrawn borrowing lines and ALM places us in comfortable liquidity situation.

https://dyvmwwyqozzzb.cloudfront.net/main/c01a42f9-4e8b-4b0e-ba93-80512d3a9a9f.pdf

Motilal Oswal Home Finance Sells Pool of Non-Performing Assets

(i) Motilal Oswal Home Finance has sold a non-performing loans pool of 540 Cr to Phoenix ARC.

(ii) Motilal Oswal Home to get 260 Cr for the assets, having an outstanding book value of 345 Cr.

(iii) The sale has helped reduce the company’s net NPA ratio to 1.51% Co.’s debt-equity gearing ratio 4x, cash balances of 1000 Cr, the filing says.

The filling copy is given below.

https://dyvmwwyqozzzb.cloudfront.net/main/New-Doc-2019-09-26-14.52.07_1.pdf

Hello Sir,
I’m interested to by 1000 qty. at Rs. 7.5, please tell me processing

please send us your contact detail at sales@unlistedzone.com so that our team will contact you.

i am interested to buy 500 qty at Rs. 5, if available