Aditya Birla Capital Limited (ABCL) has successfully raised Rs. 1,300 crore through the allotment of Non-Convertible Debentures (NCDs) via private placement. The company made this significant move on July 31, 2025, demonstrating its strong position in the debt market.

Debenture Details

The NCD allotment comprises two distinct tranches:

Tranche 1

• Number of NCDs: 1,00,000
• Total Value: Rs. 1,000 crore
• Coupon Rate: 7.30% per annum
• Maturity Date: September 15, 2028
• Tenor: 1,142 days

Tranche 2

• Number of NCDs: 30,000
• Total Value: Rs. 300 crore
• Coupon Rate: 7.42% per annum
• Maturity Date: July 31, 2030
• Tenor: 1,826 days

Both tranches of debentures have a face value of Rs. 1,00,000 each and are secured, rated, and listed on the BSE Limited and National Stock Exchange of India Limited.

Security and Listing

The debentures are secured through hypothecation, providing a first pari passu charge in favor of the Debenture Trustee over the company's receivables, securities, future moveable assets, and current assets. This security structure enhances the attractiveness of the NCDs to potential investors.

Coupon Payment Schedule

For the first tranche maturing in 2028, ABCL will make annual coupon payments on September 15th each year until maturity. The second tranche, maturing in 2030, will have annual coupon payments on July 31st.

Significance of the Issuance

This substantial NCD issuance by Aditya Birla Capital Limited underscores the company's ability to attract significant capital through debt instruments. The successful private placement to multiple investors indicates strong investor confidence in ABCL's financial stability and growth prospects.

The funds raised through this NCD issuance are likely to strengthen ABCL's capital base, potentially supporting its various financial service operations and strategic initiatives. As one of India's leading diversified financial services groups, this move by Aditya Birla Capital Limited could have positive implications for its market position and future growth strategies.

Investors and market watchers will be keen to observe how ABCL utilizes these funds and the impact on its financial performance in the coming quarters.

Aditya Birla Capital Limited (ABCL) has successfully raised Rs 147 crore through the issuance of perpetual debentures, as announced in a recent corporate filing. The company allotted 147 unsecured redeemable non-convertible perpetual debentures, each with a face value of Rs 1 crore, through a private placement.

Key Details of the Debenture Issue

Debenture Structure and Terms

The perpetual debentures issued by ABCL come with several noteworthy features:

1. No Fixed Maturity: As perpetual instruments, these debentures have no predetermined maturity date.
2. Call Option: ABCL retains the right to exercise a call option after 10 years and 16 days from the allotment date (i.e., August 13, 2035).
3. Security: The debentures are unsecured in nature.
4. Face Value: Each debenture has a face value of Rs 1.00 crore.

Financial Implications

This successful fundraising effort demonstrates ABCL's ability to attract investor interest in its debt instruments. The perpetual nature of these debentures provides the company with long-term capital without the immediate pressure of repayment, potentially enhancing its financial flexibility.

Investor Considerations

For investors, these debentures offer a steady annual interest income at a rate of 8.42%. However, it's important to note that as perpetual instruments, there is no fixed maturity date for principal repayment. The call option after approximately 10 years provides a potential exit mechanism, subject to the company's decision to exercise it.

Aditya Birla Capital Limited's move to issue these perpetual debentures aligns with its broader financial strategy, potentially aimed at optimizing its capital structure and supporting long-term growth initiatives. As always, investors are advised to consider their risk appetite and conduct thorough due diligence before making investment decisions.