Aditya Birla Finance Limited NCD: A Closer Look at a Promising Investment Opportunity

Introduction: Aditya Birla Finance Limited NCD

Investing in Non-Convertible Debentures (NCDs) can be a smart way to diversify your investment portfolio while earning a steady stream of income. Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited, offers an exciting NCD opportunity that’s worth exploring. In this blog post, we’ll delve into the details of Aditya Birla Finance Limited NCDs and why they deserve your attention.

About Aditya Birla Finance Limited

Established in 1991, Aditya Birla Finance Limited is a non-deposit-taking systemically important non-banking financial company (NBFC-NDSI) registered with the RBI. The company specializes in providing lending, financing, and wealth services to a diverse range of customers, including retail, HNI, ultra HNI, micro, small and medium enterprises (MSMEs), small and medium enterprises (SMEs), and corporate clients. Notably, it falls under the ‘Upper Layer’ NBFC category according to the RBI’s scale-based regulatory framework for NBFCs, introduced in September 2022.

Aditya Birla Finance’s Product Categories

1. Corporate/Midmarket Category: This includes services such as capital expenditure/working capital funding, structured financing, developer financing, and project financing for corporate clients across various sectors.
2. Secured Business Category: Business owners and self-employed professionals engaged in small/mid-sized businesses can benefit from services like loans against property, working capital loans, lease rental discounting, and loans against securities.
3. Unsecured Business Category: SMEs and MSMEs can access services like business loans, supply chain finance, the Business-to-Business digital platform (Udyog Plus), and business overdrafts.
4. Personal and Consumer Category: Individuals, small business owners, and micro-enterprises can avail of personal loans, consumer loans, check-out financing, and credit cards.

Impressive Asset Under Management (AUM)

As of June 30, 2023, Aditya Birla Finance Limited boasted an impressive AUM of ₹85,891.2 crore and served over 59,14,504 customers. This reflects the company’s substantial presence in the financial services sector and its ability to cater to a wide customer base.

NCD Rating

For potential investors, the NCDs issued by Aditya Birla Finance Limited come with a solid rating. They have been rated ‘IND AAA Outlook Stable’ by India Ratings & Research Private Limited and ‘[ICRA]AAA (Stable)’ by ICRA Limited, assuring you of the investment’s reliability.

Company Promoters

Aditya Birla Capital is the promoter of Aditya Birla Finance Limited, underlining the company’s strong backing and stability.

Objects of the Issue

If you’re considering investing in Aditya Birla Finance Limited NCDs, you might wonder how the funds will be utilized. The net proceeds from the issue will be channeled into the following:

1. Onward Lending, Financing, and Repayment: This includes lending and financing activities and the repayment of interest and principal on existing borrowings, ensuring the company’s continued financial strength.
2. General Corporate Purposes: Funds will also be allocated for general corporate purposes, which can contribute to the overall growth and stability of the company.

Conclusion

Aditya Birla Finance Limited NCDs present a compelling investment opportunity, backed by a reputable financial institution with a strong track record. Whether you’re seeking a regular income stream or a diversified investment option, these NCDs merit your consideration. However, as with any investment, it’s advisable to consult with a financial advisor and conduct your due diligence before making any investment decisions.