Aditya Birla Finance to raise ₹2,000 crore via maiden NCD public issue

Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited, is to raise up to ₹2,000 crore through its maiden public issue of non-convertible debentures (NCDs).

NCDs are fixed-income securities listed with major stock exchanges (BSE and NSE) in India. These NCDs can be an option for investors with a medium risk tolerance who are seeking alternatives to bank and corporate FDs. NCDs cannot be converted into shares or equities.

In a BSE filing on September 25, Aditya Birla Capital informed about the issuance of secured, rated, listed, redeemable, non-convertible debentures of face value of ₹1,000 each, aggregating up to ₹2,000 crore.

"Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited has announced its first public issue of NCDs for an amount up to ₹1,000 crore with an option to retain oversubscription up to ₹1,000 crore, aggregating up to 2,00,00,000 NCDs for an aggregate amount of up to ₹2,000 crore, pursuant to a prospectus dated September 21, 2023, filed by the company with the RoC (Registrar of Companies) and the stock exchanges," Aditya Birla Capital said in its BSE filing.

The issue will open on Wednesday, September 27, 2023, and closes on Thursday, October 12, 2023, with an option of early closure.

As per the BSE filing by Aditya Birla Capital, these NCDs are rated IND AAA with a 'Stable' outlook by India Ratings & Research Private Limited and [ICRA]AAA (Stable) by ICRA Limited. The ratings are valid and will continue to be valid for the life of the instrument unless withdrawn or reviewed. Instruments with this rating are considered to have the highest degree of safety regarding the timely servicing of financial obligations and carry the lowest credit risk, Aditya Birla Capital pointed out.

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Aditya Birla Finance is a non-banking financial company. It has been categorized as an ‘Upper Layer’ NBFC under the scale-based regulatory framework for NBFCs introduced by the RBI, with effect from September 30, 2022.

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Aditya Birla Capital Limited is Aditya Birla Finance's holding company and the promoter. It holds, as per the BSE filing, 100 per cent of the total issued and paid-up equity share capital of Aditya Birla Finance.

Aditya Birla Capital share price ended 0.66 per cent higher at ₹176.20 on BSE on Monday.

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