Motilal Oswal and Raamdeo Agrawal, the co-founders of Motilal Oswal Financial Services have rubbished the rumours of an impending split-up within the company.
Motilal Oswal and Raamdeo Agrawal, the co-founders of Motilal Oswal Financial Services have rubbished the rumours of an impending split-up within the company. Speaking to ET Now, Motilal Oswal said that there is no truth in these baseless rumours. “Every two, three years somebody will say oh, there is kind of issue between the promoters and all that kind of stuff and every time they are proved wrong. There is absolutely not an iota of truth in that kind of rumour,” Motilal Oswal told ET Now in the interview.
Raamdeo Agrawal shared an incident wherein the company had to issue a clarification in a newspaper, way back in 2004-05 to quell rumours of a takeover. “In 2004 or 2005, we had one rumour going that this company is sold to Sahara or something, the deal is done! I asked one of my employees what do you think of this rumour going on? He said sir how do we know what is happening in the boardroom?” Raamdeo Agrawal explains, adding that then the firm decided to put out a half-a-page clarification in a leading newspaper, that there’s nothing of that sort going on in the firm, and it’s being completely handled by both of them.
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Motilal Oswal said that such a split will not happen in his lifetime. “I think, we are doing our business the way we were doing 30 years back and I can say from my side that it is not going to happen. At least in my lifetime we will not split. The relationship is so strong and it is prospering. We have seen many ups and downs in the market cycles,” he noted.
Sharing the business prospects for the next decade, Raamdeo Agrawal said that Motilal Oswal’s AMC business is the fastest growing in the industry. “It is probably the fastest growing AMC and it is an equity only AMC. It is somewhat different in purpose and commitment and it goes with the overall ethos of Motilal Oswal as an equity power house. We think equity, live equity, drink equity. The 100% personal net worth of Moti and mine and 100% net worth of the company is fully committed to equities. That is the kind of culture we have and it is a brilliant opportunity,” he said, adding that the business could grow 10 times in the next 10 years, and it’s a 25-26% opportunity.