Aditya Birla Finance Limited (ABFL) has made a significant announcement regarding its inaugural public offering of non-convertible debentures (NCDs), with the aim of raising funds totaling Rs 2,000 crore. The offering will consist of NCDs valued at up to Rs 1,000 crore, with the provision to accept oversubscriptions of up to Rs 1,000 crore, potentially resulting in a total issuance of Rs 2,000 crore.
ABFL’s Financial Strategy and NCD Allocation: A Comprehensive Overview
As a subsidiary of Aditya Birla Capital Limited, ABFL has outlined its strategic plans for utilizing the proceeds from this offering. A minimum of 75 percent of the funds raised will be allocated to purposes such as extending loans, providing financing, and repaying both interest and principal on existing debts. The remaining 25 percent will be earmarked for general corporate objectives.
Allocation of the NCDs will be based on a first-come, first-served basis. These NCDs will be available in three, five, or ten-year tenor options, with interest payments provided on a monthly, annual, or cumulative basis. ABFL has also specified that coupon rates will vary, ranging from 8 percent per annum to 8.10 percent per annum for annual options. Effective yields will span from 7.99 percent per annum to 8.09 percent per annum across different series.
Lead Managers Revealed for ABFL’s NCD Offering with Strong Credit Ratings
The lead managers for this offering will include Trust Investment Advisors Private Limited, AK Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited). The subscription period for the NCDs will commence on September 27 and conclude on October 12, with the possibility of an early closing.
ABFL has disclosed that the NCDs have received credit ratings of IND AAA Outlook Stable by India Ratings & Research Private Limited and ICRA AAA (Stable) by ICRA Limited.
