Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited, is preparing to raise up to ₹2,000 crore through its maiden public issue of non-convertible debentures (NCDs). Non-Convertible Debentures are fixed-income securities that are listed on major stock exchanges in India, such as the BSE and NSE. These NCDs provide an investment option for individuals with a medium risk tolerance who are seeking alternatives to traditional bank and corporate fixed deposits. Importantly, NCDs cannot be converted into shares or equities.
In a BSE filing on September 25, Aditya Birla Capital informed the public about its plan to issue secured, rated, listed, redeemable non-convertible debentures with a face value of ₹1,000 each, aggregating up to ₹2,000 crore.
The BSE filing stated, “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.”
The subscription period for this NCD issue will commence on Wednesday, September 27, 2023, and conclude on Thursday, October 12, 2023, with an option for early closure.
These NCDs have been assigned IND AAA with a ‘Stable’ outlook by India Ratings & Research Private Limited and [ICRA]AAA (Stable) by ICRA Limited, according to the BSE filing by Aditya Birla Capital. These ratings signify the highest level of safety regarding timely financial obligation servicing and the lowest credit risk associated with the instruments.
Aditya Birla Finance is a non-banking financial company (NBFC) categorized as an ‘Upper Layer’ NBFC under the scale-based regulatory framework for NBFCs introduced by the Reserve Bank of India (RBI) effective September 30, 2022.
Aditya Birla Capital Limited serves as the holding company for Aditya Birla Finance and is its promoter. The holding company currently holds 100% of the total issued and paid-up equity share capital of Aditya Birla Finance.
On Monday, the share price of Aditya Birla Capital concluded 0.66% higher at ₹176.20 on the BSE, indicating investor interest and positive sentiment regarding the upcoming NCD issue.
