In order to generate money totaling Rs 2,000 crore, Aditya Birla Finance Ltd (ABFL) has launched its initial public offering of non-convertible debentures (NCDs). In a statement, ABFL said that it planned to issue NCDs with a maximum value of Rs 1,000 crore and that it still had the option to take oversubscriptions worth another Rs 1,000 crore, for a total potential issuance of up to Rs 2,000 crore.
A Comprehensive Analysis of ABFL’s Financial Strategy and NCD Allocation
ABFL, an affiliate of Aditya Birla Capital Limited, has specified how it plans to use the money raised from this transaction. The Company’s present debts will be repaid in full, including interest, with at least 75% of the revenues going toward new loans, financing, and principal repayment. The remaining 25% will be set aside for overall business goals.
NCDs will be distributed on a first-come, first-served basis. These NCDs offer interest payments on a “monthly,” “annual,” or “cumulative” basis and have tenor options of three, five, or ten years. Also, according to ABFL, there will be a range in coupon rates for annual options, from 8% to 8.10% annually. Depending on the series, the effective yields will range from 7.99 percent to 8.09 percent annually.
Lead Managers for ABFL’s NCD Offering with Excellent Credit Ratings Announced
The primary managers for this offering will be Trust Investment Advisors Private Limited, AK Capital Services Limited, JM Financial Limited, and Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Limited). The subscription period will start on September 27 and end on October 12, while an early closing is possible.
According to ABFL, ICRA Ltd and India Ratings & Research Private Limited both gave the NCDs ratings of AAA (Stable) and IND AAA Outlook Stable, respectively.