Aditya Birla Group's renewable energy unit, led by Kumar Mangalam Birla, has raised Rs 2500 crore through non-convertible debentures in a private placement, the firm announced on Tuesday. Grasim Industries owns Aditya Birla Renewables Limited (ABReL), a renewable energy business. The Rs 2,500 crores include a base issue size of up to Rs 2,000 crores as well as a green shoe option to retain up to Rs 500 crores in oversubscription.
Funds will be used to increase capacity, repay debt, and for general business objectives. ABReL has a total installed capacity of about 1 GW spread over 42 projects in ten states. The company intends to reach 2 GW capacity by the end of this year.
"ABReL has issued 2,50,000 rated redeemable non-cumulative non-convertible debentures with a face value of Rs 1 lakh each (debentures)," the business stated in a regulatory filing, adding that these debentures were issued with an annual coupon of 8.6% and a three-year duration.
Various mutual funds participated in the oversubscribed issuance, attracting interest of Rs 3605 crores from qualified investors, including Rs 600 crore from anchor investors such as SBI Equity Hybrid Fund, Nippon India Mutual Fund, and Axis Liquid Fund. NCDs will be listed on the BSE Limited.
Axis Bank served as the main arranger for the issuance. Aditya Birla Renewables is critical to meeting these Group companies' renewable energy and decarbonization ambitions. The Group's principal manufacturing divisions, Grasim, Ultratech, Hindalco, and Birla Carbon, have all pledged to achieve 'Net-Zero' emissions by 2050.
