Motilal Oswal Financial Services Ltd (MOFSL) on Friday said its promoters Motilal Oswal and Raamdeo Agarawal will donate 5 per cent each of their stake in the company for charitable purposes.
The entire donation amount will be spent in the next 10 years or earlier, MOFSL said in a regulatory filing to stock exchanges.
Motilal Oswal and Raamdeo Agarawal will donate 73,97,556 equity shares each of the company.
"The company has received an expression of interest/intent, from Motilal Oswal and Raamdeo Agarawal, promoters of the company along with their family members, committing to donate 5 per cent equity shares by each of them aggregating to 10 per cent of total paid-up share capital of the company, towards charitable purposes," the filing noted.
On Thursday, the company said it will transfer its broking and distribution business into Glide Tech Investment Advisory by way of slump sales. Glide, a wholly-owned subsidiary of MOFSL, is in the process of changing name to Motilal Oswal Broking and Distribution Private Limited (MOBDPL).
In addition, the company will transfer its wealth business from wholly-owned subsidiary Motilal Oswal Wealth Ltd (MOWL) to parent company MOFSL.
MOFSL's consolidated profit after tax jumped to Rs 527 crore in three months to June 2023 from Rs 31.3 crore in the year-ago period. Total revenues from operations rose to Rs 1,500 crore from Rs 754 crore.
