Aditya Birla Finance to raise ₹2,000 Cr in maiden NCD offering

Aditya Birla Finance to raise ₹2,000 Cr in maiden NCD offering

Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited, is set to embark on its inaugural public issue of non-convertible debentures (NCDs), with a target of raising up to ₹2,000 crore.

Non-convertible debentures (NCDs) are fixed-income securities listed on major Indian stock exchanges such as BSE and NSE. They present an attractive option for investors with a moderate risk appetite, offering an alternative to traditional bank and corporate fixed deposits. Importantly, NCDs cannot be converted into shares or equities.

In a disclosure to the Bombay Stock Exchange (BSE) on September 25, Aditya Birla Capital outlined the issuance of secured, rated, listed, redeemable, non-convertible debentures, each with a face value of ₹1,000. The aggregate value of these debentures is set at ₹2,000 crore.

“Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited, has officially announced its inaugural NCD offering for an amount of up to ₹1,000 crore, with the provision to retain oversubscription up to ₹1,000 crore. This totals to 2,00,00,000 NCDs, amounting to ₹2,000 crore, in line with the prospectus filed by the company with the Registrar of Companies (RoC) and the stock exchanges on September 21, 2023,” revealed Aditya Birla Capital in its BSE filing.

The subscription period will commence on Wednesday, September 27, 2023, and conclude on Thursday, October 12, 2023, with an option for early closure.

As indicated in the BSE filing by Aditya Birla Capital, these NCDs have been assigned an IND AAA rating with a ‘Stable’ outlook by India Ratings & Research Private Limited, and [ICRA]AAA (Stable) by ICRA Limited. These ratings will remain valid throughout the life of the instrument, unless otherwise reviewed or withdrawn. Instruments of this rating are regarded as possessing the highest level of safety in terms of timely financial obligation servicing and carry the lowest credit risk, emphasized Aditya Birla Capital.

Aditya Birla Finance operates as a non-banking financial company and has been classified as an ‘Upper Layer’ NBFC under the RBI’s scale-based regulatory framework for NBFCs, effective from September 30, 2022.

Aditya Birla Capital Limited, the parent company of Aditya Birla Finance, is also the promoter and holds 100 percent of the total issued and paid-up equity share capital of Aditya Birla Finance, as stated in the BSE filing.

On Monday, Aditya Birla Capital’s share price saw a 0.66 percent increase, closing at ₹176.20 on the Bombay Stock Exchange.

About Aditya Birla Finance:

Aditya Birla Finance Limited (ABFL) is a versatile financial services provider that offers a wide range of financial solutions, including lending, financing, and wealth management services, to customers across India.

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