Motilal Oswal Financial Services Ltd (MOFSL) has announced the acquisition of Gleiten Tech Private Limited as a wholly-owned subsidiary, strengthening its position within the Motilal Oswal Group. In a board meeting held on September 24, 2024, the Finance Committee of MOFSL approved the purchase of 5,00,000 fully paid-up equity shares of Gleiten Tech, valued at Rs. 50,00,000, representing 100% of the paid-up capital of the company. This strategic acquisition positions Gleiten Tech as a vehicle for the expansion of Motilal Oswal's existing and proposed business activities.

Gleiten Tech Private Limited, incorporated on February 18, 2022, operates in the field of Information Technology. Despite being a young entity with a turnover of Rs. 1,80,810 for the financial year 2023-24, Gleiten Tech is seen as an essential component in Motilal Oswal’s strategic expansion plans. The acquisition of the company aligns with the group's vision of enhancing its operational capabilities in technology and innovation.

Notably, the transaction qualifies as a related party transaction, as the equity shares were purchased from Mr. Pratik Oswal and Mrs. Natasha Malpani, both members of the promoter group of Motilal Oswal Financial Services Limited. The company acquired 4,90,000 equity shares from Mr. Oswal and 10,000 shares from Mrs. Malpani. However, the transaction was carried out on an arm’s length basis, with the valuation report provided by M/s Manoj K Shah & Co., Chartered Accountants, ensuring a fair price for the shares.

With the acquisition of Gleiten Tech, Motilal Oswal Financial Services aims to leverage its IT capabilities and explore new business opportunities within the Motilal Oswal Group. The group plans to potentially amend Gleiten Tech’s Memorandum and Articles of Association to meet evolving business requirements, ensuring alignment with MOFSL’s long-term strategic goals. Although Gleiten Tech does not currently have active operations, it is poised to become an integral part of the group's growth trajectory.

This acquisition marks another milestone in Motilal Oswal's ongoing strategy of expanding and diversifying its portfolio. The financial services giant has continuously sought to broaden its reach across different sectors, with a strong focus on technology-driven growth. Through Gleiten Tech, Motilal Oswal aims to bolster its business expansion efforts, paving the way for further opportunities in both domestic and international markets.

The completion of the acquisition is expected within a month from the date of intimation. Following this, MOFSL will hold 100% of the equity shares, establishing full control over Gleiten Tech. The acquisition deal does not require any governmental or regulatory approvals, streamlining the process for immediate operational integration.

Motilal Oswal’s move to acquire Gleiten Tech aligns with its larger goal of becoming a leading force in the information technology and financial services sectors. With the acquisition now underway, the company is well-positioned to leverage technology for its future business expansions, ensuring it remains at the forefront of the rapidly evolving financial landscape.

As Motilal Oswal Financial Services Ltd continues to execute its strategic vision through acquisitions like Gleiten Tech, it remains a key player in shaping the future of financial services in India, with technology and innovation driving its next phase of growth.

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