Aditya Birla Finance NCD opens for subscription on 27 September 2023. The company aims for a base issue size of ₹1000 Crores.
About the company
Incorporated in 1991, Aditya Birla Finance is registered with the RBI as a non-deposit-taking systemically important non-banking financial company (“NBFC-NDSI”). The company has been categorized as an ‘Upper Layer’ NBFC under the scale-based regulatory framework for NBFCs introduced by the RBI, with effect from 30 September 2022. The company offers end-to-end lending, financing, and wealth services to retail, HNI, ultra HNI, micro, small and medium enterprises (“MSME”), small and medium enterprises (“SME”), and corporate customers.
The AUM of the company stood at INR 85,891.2 crore as of 30 June 2023. It has 332 branches. The number of customers of the company has grown from 2,12,787 as of 31 March 2021 to 59,14,504 as of 30 June 2023. The company continues its focus on growing higher-margin MSME and Retail lending. Loans to Retail, SME, and HNI categories grew to ~67% of the portfolio in the Financial Year ended 2023 through focused expansion in such categories with a year-on-year growth of 57%.
As of 30 June 2023, Aditya Birla Finance loan book stood at INR 85,778.5 crore. As of 30 June 2023, the net interest income (including fee income) was INR 1,433.0 crore with a net interest margin of 7.0%. The revenue from operations has increased at a year-on-year growth of 5.0% from INR 5,511.5 crores for FY 2021 to INR 5,784.9 crores for FY 2022 and at a year-on-year growth of 42.4% to INR 8,236.9 crores for the FY 2023.
Objectives of the Issue
- Onward lending, financing, and repayment of interest and principal of existing borrowings of the company.
- General corporate purposes.
Aditya Birla Finance NCD Details
| Issue Open | 27 Sep – 12 Oct 2023 |
| Security Name | Aditya Birla Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 1,000 Crores |
| Issue Size (Shelf) | ₹ 2000 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | IND AAA Outlook Stable by India Ratings and [ICRA]AAA (Stable) by ICRA |
| Tenor | 3 Years, 5 Years, 10 Years |
| Series | Series I to VI |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Vistra Itcl India Limited |
Aditya Birla Finance NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 3 Years | Annual | 8.00% | 7.99% | INR 1,000 |
| Series 2 | 3 Years | Cumulative | NA | 7.99% | INR 1,259.46 |
| Series 3 | 5 Years | Annual | 8.05% | 8.04% | INR 1,000 |
| Series 4 | 5 Years | Cumulative | NA | 8.04% | INR 1,472,73 |
| Series 5 | 10 Years | Monthly | 7.80% | 8.08% | INR 1,000 |
| Series 6 | 10 Years | Annual | 8.10% | 8.09% | INR 1,000 |
Aditya Birla Finance NCD Rating
The NCDs proposed to be issued pursuant to this Issue have been rated IND AAA Outlook Stable by India Ratings & Research Private Limited, and rated [ICRA]AAA (Stable) by ICRA Limited.
Aditya Birla Finance Company Financials
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 50,755.20 | 56,969.20 | 84,122.80 |
| Revenue | 5,528.00 | 5,796.90 | 8,267.70 |
| Profit After Tax | 768.80 | 1,108.30 | 1,553.80 |
| Net Worth | 8,965.90 | 9,968.90 | 11,530.70 |
Aditya Birla Finance NCD Allocation Ratio
Aditya Birla Finance Company Promoters
- Aditya Birla Capital
NCD Lead Manager
- Trust Investment Advisors Private Limited
- A.K. Capital Services Limited
- JM Financial Limited
- Nuvama Wealth Management Limited
Aditya Birla Finance Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: abfl.ncd2023@linkintime.co.in
Website: www.linkintime.co.in
Aditya Birla Finance Contact Details
ADITYA BIRLA FINANCE LIMITED
One World Centre, Tower 1, 18th Floor,
841, Jupiter Mills Compound, Senapati Bapat Marg,
Elphinstone Road, Mumbai 400 013, Maharashtra, India
Phone: 022 4356 7100
Email: abfl.dm@adityabirlacapital.com
Website: www.adityabirlafinance.com
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in Aditya Birla Finance NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
