ABCAPITALNSEAditya Birla Capital LimitedMediumNeutral
Announced Tue, 24 Mar · 17:22 IST

Aditya Birla Capital Limited has informed the Exchange regarding allotment of its Non-Convertible Debentures

Fund Raising View source PDF

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AI summary

Aditya Birla Capital has allotted 25,000 unsecured, rated, listed, taxable, redeemable subordinated non-convertible debentures (NCDs) on a private placement basis, raising Rs. 250 crore. Each debenture has a face value of Rs. 1 lakh and carries a coupon of 8.03% per annum, payable annually. The original issue size was Rs. 150 crore with a green shoe option of up to Rs. 100 crore, which was fully subscribed, bringing the total allotment to Rs. 250 crore. The NCDs have a long tenor of about 10 years, maturing on May 4, 2035, and are listed on both BSE and NSE. The debentures are subordinated in nature, qualifying as Tier 2 capital for the company's NBFC operations.

Likely market impact

This Rs. 250 crore fundraising strengthens Aditya Birla Capital's long-term capital base, as subordinated NCDs count as Tier 2 capital and will support lending growth across its NBFC businesses. The full exercise of the green shoe option signals strong investor demand, though the 8.03% coupon will add to interest expenses over the next decade.