Aditya Birla Capital's Subsidiary To Raise Up To Rs 2000 Cr Through NCDs

Aditya Birla Finance Limited (ABFL), a wholly owned subsidiary of Aditya Birla Capital Limited, on Monday, Sept 25, 2023, announced its public issue of NCDs. The company to raise up to Rs 2,000 crore through its maiden public issue of NCDs.

The issue of NCDs for an amount up to Rs 1,000 crores with an option to retain oversubscription up to Rs 1,000 crores, aggregating up to 2,00,00,000 NCDs for an aggregate amount of up to Rs 2,000 crores.

"The NCDs proposed to be issued pursuant to this Issue have been rated IND AAA Outlook Stable and rated [ICRA] AAA (Stable) by India Ratings & Research Private Limited and by ICRA Limited, respectively. The ratings are valid and will continue to be valid for the life of the instrument unless withdrawn or reviewed.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 a highest degree of safety regarding timely servicing of financial obligations and carry the lowest credit risk," the company said in a press release.

Trust Investment Advisors Private Limited, A.K. Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the lead managers to the Issue.

The Issue will open on Wednesday, September 27, 2023, and close on Thursday, October 12, 2023, with an option of early closure of the Issue on such date, as may be decided by the Board of Directors of the Company or a duly authorized committee thereof, subject to compliance with applicable laws.
Allotment of NCDs shall be made, in consultation with the Designated Stock Exchange, on a date priority basis, i.e., a first-come, first-serve basis, based on the date of upload of each application into the Electronic Book with Stock Exchanges, in each Portion subject to the Allocation Ratio specified in the prospectus. However, from the date of oversubscription and thereafter, the allotment will be on proportionate basis as detailed in the Prospectus.

The Company proposes to utilise at least 75% of the net proceeds of the Issue towards onward lending, financing and repayment of interest and principal of existing borrowings of the Company and a maximum of up to 25% of the net proceeds towards general corporate purposes, company stated.

Stock Outlook

Meanwhile, the share price of Aditya Birla Capital on BSE closed 0.86% higher at Rs 176.55 apiece with the day's highs and lows of Rs 176.95 and Rs 173.40, respectively. It declined 3.42% in 1 week. It gave 57.92% in 1 year, and 180.91% in 3 years, respectively. It has given 47.37% in 5 years.

Its 52-week high is Rs 199.40 apiece and 52-week low is Rs 106.80 apiece on the BSE. It has a market cap of Rs 45,879.08 Crore.

About - Aditya Birla Capital Limited

Aditya Birla Capital Limited ("ABCL"), our holding company and the promoter, holds 100% of our total issued and paidup Equity Share capital, as on the date hereof. ABCL has 1,295 branches across its businesses as at March 31, 2023, out of which, 584 are co-located branches across 155 locations ("One ABC Locations"). The One ABC Locations have branches of two or more subsidiaries located at the same location and provide personalized assistance to our customers, helping them achieve their financial goals and helping us leverage potential cross-selling opportunities across the product suite. ABCL is a diversified financial services group and operates in a number of businesses that include non-banking finance, housing finance, life insurance, standalone health insurance, asset management, stock and securities.

Aditya Birla Capital Limited is a part of the global conglomerate Aditya Birla Group, having businesses present across a wide range of sectors - metals, pulp and fibre, chemicals, textiles, carbon black, telecom, cement, financial services, fashion retail and renewable energy.