Aditya Birla Capital – Fundraising Update

Aditya Birla Capital Ltd. (ABCL) has allotted secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) worth ₹1,050 crore on a private placement basis. Instrument Details: Type: Secured NCDs (non-convertible debentures) Mode: Private placement Size: ₹1,050 crore Listing: To be listed on the wholesale debt market segment (exchange filing to follow) 💰 Financial Implications Strengthening Balance Sheet The NCD issue provides long-term funding and diversifies borrowing sources. Funds will likely be used for capital adequacy, business expansion, and refinancing existing debt. Cost of Capital Private placement allows the company to lock in competitive borrowing rates compared to bank loans. Helps optimize debt mix (bank loans + market borrowings). Leverage & Ratios As of FY24, ABCL had a consolidated debt-to-equity ratio around 5x (largely due to NBFC business). This issue is not expected to significantly alter leverage, but it adds to liabilities while improving liquidity. Credit Profile Secured NCDs are generally backed by receivables/financial assets, offering lower credit risk for investors. ABCL’s NBFC arms (Aditya Birla Finance, Aditya Birla Housing Finance) hold strong credit ratings, aiding investor demand.