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Aditya Birla Finance Limited NCD: Everything you need to know

27 Sept 2023 , 11:30 AM

Aditya Birla Finance Limited, a subsidiary of Aditya Birla Capital Limited, is a non-deposit-taking systemically important non-banking financial company (NBFC-NDSI) registered with the Reserve Bank of India (RBI). The company specializes in providing lending, financing, and wealth services to a diverse range of customers, including retail clients, high-net-worth individuals (HNIs), ultra-high-net-worth individuals (Ultra HNIs), micro, small and medium enterprises (MSMEs), small and medium enterprises (SMEs), and corporate clients. It is coming up with a debt offer which is starting for subscription from September 27 to October 12, 2023. Click here to apply in the Aditya Birla Finance Limited NCD. 

The company is raising Rs 1000 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The NCD has received rating of IND AAA Outlook Stable by India Ratings and [ICRA]AAA (Stable) by ICRA.

Aditya Birla Finance Limited has reserved 25% quota for institutional investors, 25% for non-institutional investors, 25% for high net-worth investors and 25% for retail investors.

The company will use the net proceeds from the issue for onward lending, financing, and repayment of interest and principal of existing borrowings of the company and for other general corporate purposes.

These NCDs have tenures of 3 years, 5 years and 10 years. It offers coupon rates from 8.00% to 8.10% based on the selection of investors. The frequency of interest payments will be Annual or Cumulative as per the choice of investors. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of Aditya Birla Finance NCD September 2023 

  Series 1 Series 2 Series 3 Series 4 Series 5 Series 6
Frequency of Interest Payment Annual Cumulative Annual Cumulative Monthly Annual
Nature Secured Secured Secured Secured Secured Secured
Tenor 3 Years 3 Years 5 Years 5 Years 10 Years 10 Years
Coupon (% per Annum) 8.00% NA 8.05% NA 7.80% 8.10%
Effective Yield (% per Annum) 7.99% 7.99% 8.04% 8.04% 8.08% 8.09%
Amount on Maturity (In Rs.) Rs 1,000.00 Rs 1,259.46 Rs 1,000.00 Rs 1,472.73 Rs 1,000.00 Rs 1,000.00

 

RHP:

https://www.sebi.gov.in/sebi_data/commondocs/sep-2023/Prospectus-Aditya_Birla_Finance_Ltd-21.09.2023.pdf

Tax implications:

  • Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
  • As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
  • As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
  • In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
  • Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

Aditya Birla Finance NCD is managed by Trust Investment Advisors Private Limited, A.K. Capital Services Limited, Jm Financial Limited, and Nuvama Wealth Management Limited. Link Intime India Private Ltd is the registrar of NCD and Vistra Itcl India Limited is debenture trustee to the same.

Aditya Birla Finance Limited NCD

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