Motilal Oswal Financial Services Limited (MOFSL) purchased 7.54 crore compulsorily convertible preference shares (ccps) of 7.54 crore compulsorily convertible preference shares (ccps) of Quick Commerce Platform- Jepto Private Limited. Zepto, earlier called Kiranakart Technologies Private Limited, is a large quick commerce platform in India that serves to deliver grocery in 10 minutes.
What are CCPS shares?
Compulsorily Convertible Preference Shares (CCPS) is a special shares that the company gives to investors. After some time, these shares are necessarily converted into Compulsorily Equity Shares.
This means that in the beginning you buy them as a preference share, which usually gives fixed dividends and the share in the company’s profit is limited. But after the scheduled time or conditions, they automatically convert to the common stocks of the company.
Zepto’s fast growing business
The foundation of the Quick Commerce platform Zepto was laid by Aadit Palicha and Kaivalya Vohra in 2021. The company did a business of ₹ 4,454.52 crore in FY 2024. This financial year 2023 has increased considerably by ₹ 2,024.40 crore and ₹ 140.70 crore in FY 2022. Zepto delivers fresh fruits, vegetables and everyday essential items in many big cities.
The reason for Motilal Oswal’s investment
MOFSL has said that the deal is not between the concerned party and has been done on general terms. However, MOFSL promoters and their group already have some shares of Zepto. This investment is part of MOFSL’s Treasury Investment Scheme. Its purpose is to get good returns in the long term. This transaction will be completed in the next 15 days.
Mofsl quarterly results
MOFSL’s revenue increased by 18% in the June quarter. It increased from ₹ 2,314 crore to ₹ 2,737 crore. Pure profits rose 32% to ₹ 1,162 crore. Ebitda increased by more than six times to ₹ 719.5 crore, and the margin of profit increased from 23.5% of the March quarter to 62.82%.
Growth in Assets Under Management (AUM)
The total AUM of MOFSL’s AMC (Asset Management Company) increased by 64% to ₹ 1.6 lakh crore as compared to last year. The AUM also increased by 78% to ₹ 26,051 crore in the SIP (Systematic Investment Plan) section, showing the growing interest of investors.
MOFSL shares
The shares of Motilal Oswal Financial Services closed down 0.81% on BSE at ₹ 910.75 on Tuesday. In the last 1 month, stock has given a return of 38.84% and 51.61% in 1 year.
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