Having made it big in the stock brokerage world, 53-year-old Motilal Oswal is betting on new areas such as real-estate funding. Speaking to BusinessLine , the Co-Founder and Chairman & Managing Director of Motilal Oswal Financial Services said the company will use its new ₹1,000-crore real-estate fund to invest primarily in the affordable housing segment.
“We are planning to raise ₹1,000 crore in our real-estate private equity fund, which will invest in both debt and equity. The fund will invest in projects in the affordable housing segment,” Oswal said. The company’s revenue from the traditional brokerage business grew only 5.7 per cent and segment profit was down 41.5 per cent year-on-year during the first half of FY16.
On the other hand, newer businesses such as asset management and housing finance have been growing rapidly.
The real-estate PE fund business, which comes under the asset management segment for the company, has already launched two funds.
But Oswal insists that the traditional business is not slowing.
“Our traditional business, which includes retail and institutional broking, will continue to grow in terms of market positioning and profitable market share,” he said. “Broking, which is our core business, is expected to register 20 per cent growth,” Oswal added.
Interview on p18
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.