Aditya Birla Finance Limited NCD Public Issue September 2023 Review

5 min read • Published 25 September 2023
Written by Mukund Khemka

Aditya Birla Finance Limited is coming up with a public NCD issuance and have filed the prospectus on SEBI. Let’s understand the profile of Aditya Birla Finance Limited & its group.

IssuerAditya Birla Finance Limited
Type of InstrumentSecured, Rated, Listed, Redeemable, Non-Convertible Debentures
Issue SizeRs. 1,000 Crs (Base Issue) + Rs. 1,000 Crs (Green Shoe Option)
Face ValueRs. 1,000
Tenure3 years to 10 years across Series I-VI
Yield7.99% to 8.09% across Series I-VI
Application sizeMinimum Rs. 10,000/- (10 NCDs) and in multiples of 1 NCD thereafter
Security CoverMinimum 100% security cover on the principal outstanding plus accrued interest thereon
Credit RatingIND AAA/Stable & ICRA AAA/Stable
Issue Open Date27-Sep-23 
Issue Close Date12-Oct-23

Specified terms of the NCDs are as follows:

Series ISeries IISeries III*Series IVSeries VSeries VI
Frequency of Interest PaymentAnnualCumulativeAnnualCumulativeMonthlyAnnual
Nature of InstrumentsSecured NCDs
Tenor3 years3 years5 years5 years10 years10 years
Coupon (% per Annum)8.00%NA8.05%NA7.80%8.10%
Effective Yield (% per Annum)7.99%7.99%8.04%8.04%8.08%8.09%
Amount on Maturity (Rs.)1,000.001,259.461,000.001,472.731,000.001,000.00

The Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated the choice of relevant NCD Series.

About Aditya Birla Finance Limited

ABFL (the “Company”), a wholly owned subsidiary of Aditya Birla Capital Limited, is among the leading well-diversified NBFC in India.  ABFL is a Systemically Important Non-Banking Financial Company not accepting public deposits (“NBFC-ND-SI”) registered with the Reserve Bank of India (“the RBI”) under section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in offering end-to-end lending, financing, and wealth services to retail, HNI, ultra HNI, micro, small and medium enterprises (“MSME”), small and medium enterprises (“SME”) and corporate customers. 

The Company offers customized solutions in areas of personal and business loans, corporate finance, mortgages, check-out financing, loans against property, term loans, working capital loans, loans against securities, project loans and wealth services. The company obtained a fresh certificate of registration bearing number N-01.00500 dated August 9, 2011, issued by the RBI to carry on the business of NBFC.

ABFL is amongst the top five largest private diversified NBFCs in India based on AUM. The AUM and total loans outstanding of the Company stood at ₹ 85,891.20 Crore and ₹ 85,778.50 Crore, respectively as on June 30, 2023. The Company employees 5,240 people as of June 30, 2023.

About Group

Aditya Birla Capital Limited was originally incorporated as ‘Aditya Birla Financial Servies Private Limited’ on October 15, 2007. After being converted to a public company on December 4, 2014, its name was changed to Aditya Birla Capital Limited on June 21, 2017.

Aditya Birla Capital Limited (“ABCL”) is a financial solutions group that caters to the diverse needs of its customers across their life cycle. With subsidiaries/JVs that have a strong presence across Protecting, Investing and Financial Solutions, ABCL is powered by more than 38,000 employees with a nationwide reach through 1,331 branches and more than 2,00,000 agents/channels. As of June 30, 2023, ABCL manages aggregate AUM of about ₹ 3.9 lakh Crore with a consolidated lending book of over ₹ 1 lakh Crore through its NBFC and HFC arm while the remaining ₹ 2.9 lakh Crore contributed through its AMC and Insurance Business arm.

Aditya Birla Capital Limited is a part of the global conglomerate Aditya Birla Group, which is in the league of Fortune 500. The Aditya Birla Group is anchored by an extraordinary force of over 1,85,000 employees belonging to 100 nationalities. The group, with over seven decades of business existence, has grown into a global powerhouse in a wide range of sectors- metals, pulp and fibre, chemicals, textiles, carbon black, telecom, cement, financial services, fashion retail, and renewable energy.

The Corporate Structure of the Group is shown below:

A diagram of a companyDescription automatically generated

Product Offerings

The diverse products offered by ABFL are classified under the four categories as follows:

Corporate/Mid-Market Category (30.78%)Secured Business Category (38.64%)Unsecured Business Category (9.98%)Personal and Consumer Category (20.60%)
Products1.Capex/working capital funding
2.Structured Finance
3.Developer Financing
4.Project Finance
1.Loans against Property
2.Working Capital Loans
3.Lease rental discounting
4.Loans against securities
1.Business Loans
2.Supply Chain Finance
3.B2B Digital Platform (Udyog Plus)
4.Business overdraft
1.Personal Loans
2.Consumer Loans
3.Check-out financing
4.Credit Card
Customers (As at June 30, 2023)48418,314 82,64258,13,064 
Geographic PresenceTop 6-7 Cities in IndiaSemi-urban areas/SME clustersSemi-urban areasSemi-urban areas 
Target CustomersCorporates across various sectorsBusiness owners and self-employed professionals in small/mid-sized businessesSMEs and MSMEs Individuals, small business owners, micro enterprises

As of June 30, 2023, the company enjoys a geographical footprint with 332 branches spread across 297 cities with a focused expansion in Tier III and Tier IV cities and a customer base of 59,14,504. The distribution of branches across the zones is depicted below:

A graph showing a network of dataDescription automatically generated with medium confidence
Company’s Financials
AttributesQ1 FY24FY23FY22FY21
AUM (₹ in Cr)85,891.280,555.555,180.048,688.6
Net Worth (₹ in Cr)12,050.811,530.79,968.98,965.9
PAT (₹ in Cr)515.71,553.8 1,108.3     768.8
Tier I13.60%13.90%18.10%18.40%
Tier II2.40%2.50%3.70%4.30%

The Product-wise AUM split is as follows:

Product CategoryQ1 FY24FY23FY22FY21
Personal and Consumer17,692.815,441.85,208.42,664.7
Unsecured Business8,573.88,408.65,348.64,107.9
Secured Business33,187.831,944.424,428.521,033.1

Credit Rating

RatingAAA (Stable)AAA (Stable)AAA (Stable)AAA (Stable)

Borrowings of the Company

As of 30th June 2023, company has total o/s debt of ₹ 75,476.00 Crore, as follows:

Nature of BorrowingsO/s Amount% Share
Secured Borrowings63,815.3084.55%
Unsecured Borrowings11,660.7015.45%
Total75,476.00 100.00%
Type of BorrowingsO/s Amount% Share
Term Loans39,960.10 52.94%
Secured NCDs16,490.2021.85%
Commercial Papers7,285.509.65%
Cash Credit/WCDL/Overdraft4,747.90    6.29%
External Commercial Borrowings2,324.103.08%
Subordinated Debt2,277.20 3.02%
Inter-Corporate Loans1,080.301.43%
Unsecured Perpetual and Partly Paid NCDs379.700.50%
Total75,476.00 100.00%

Peer Comparison*: As of 30th June 2023

AttributesAditya Birla FinanceBajaj FinanceL&T Finance Holdings
AUM (₹ in Cr)85,891.202,70,097.0078,566.00
Net Worth (₹ in Cr)12,050.8057,994.0722,072.00
PAT (₹ in Cr)515.703,436.89531.00

*According to the prospectus, Bajaj Finance and L&T Finance Holdings are among the primary competitors of ABFL.



  • Strong ultimate parentage of Grasim and diversified financial services group.
  • Key Management Personnel with vast experience in the financial services domain.
  • Good financial flexibility and diversified funding profile.
  • Improving Profitability.


  • The Company’s ability to manage its credit costs with a change in book towards unsecured segment remains a key monitorable.
  • ABFL’s asset quality remains exposed to slippages from unsecured segments.
  • There has been a decrease in CRAR over the past years with the leverage being high at 6.32.

Source of data: Prospectus, Annual Report, Rating Rationale, Quarterly results, etc.

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Mukund Khemka

Investment Analyst
Mukund is a budding investment analyst making his way into the field of capital markets. He is a CFA Level 3 Candidate and has previously worked with PwC AC in the financial markets domain. He is currently working as a Credit Associate at Wint Wealth.

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