• By Vaamanaa Sethi
  • Mon, 25 Sep 2023 03:11 PM (IST)
  • Source:JND
Add as a preferred

Aditya Birla Finance, which is a subsidiary of Aditya Birla Capital, has announced its first public issue of non-convertible debentures (NCDs) for an amount up to Rs 1,000 crore with an option to retain oversubscription up to aggregate amount up to ₹ 2,000 crores.

The maiden public issue by the company has been rated ‘AAA’ outlook stable and ‘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 The ratings are valid and will continue to be valid for the life of the instrument unless withdrawn or reviewed.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 the highest degree of safety regarding timely servicing of financial obligations and carry the lowest credit risk.

Also read: Bajaj Finance Share Price Rise Over 4% After Company Board To Consider Fund Raising; Here’s What Experts Say

The NCDs offered in the issue are with the tenor options of 3 years, 5 years or 10 years offered with ‘monthly’, ‘annual’ or ‘cumulative’ interest payment frequency. Coupon rates range from 8.00% p.a. to 8.10% p.a. for annual options with effective yields ranging from 7.99% p.a. to 8.09% p.a. across various series.

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. 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. 

Also read: Delta Corp Share Price Plunges 20% To 33- Month Low; Here’s Why

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.