Aditya Birla Renewables Raises ₹2,500 Crore Through NCDs

Aditya Birla Group’s renewable energy arm, Aditya Birla Renewables Limited (ABReL), has successfully secured ₹2,500 crore through a private placement of non-convertible debentures (NCDs). This significant funding boost will fuel the company’s expansion plans, reduce existing debt, and support general corporate activities.

The NCD issue, underwritten by Grasim Industries, attracted strong interest from various mutual funds, resulting in an oversubscription. The base issue size of ₹2,000 crore was fully subscribed, and the green shoe option to retain up to ₹500 crore was exercised.

ABReL, which currently boasts an installed capacity of approximately 1 GW across 42 projects in 10 states, is poised to further strengthen its position in the renewable energy sector. The company has set an ambitious target of reaching 2 GW capacity by the end of the year.

The newly raised funds will be instrumental in achieving this goal by enabling ABReL to invest in new projects, upgrade existing infrastructure, and repay outstanding debt. This strategic move aligns with the Aditya Birla Group’s broader commitment to sustainable development and decarbonisation.

The NCDs, rated and redeemable, offer a coupon rate of 8.6% per annum and have a maturity period of three years. They will be listed on the BSE Ltd. Axis Bank played a pivotal role in arranging the issue.

Aditya Birla Renewables serves as a key enabler for the Group’s manufacturing businesses, including Grasim, Ultratech, Hindalco, and Birla Carbon, in their pursuit of net-zero emissions by 2050. 

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