Aditya Birla Renewables Ltd (ABReL), a subsidiary of Grasim Industries under the Aditya Birla Group, successfully raised Rs 2,500 crore from the financial markets through a private placement of non-convertible debentures (NCDs). The fundraising took place through the issuance of NCDs on September 24, 2024, as per a regulatory filing by Grasim Industries.
The company issued 2,50,000 unsecured, listed, rated, and redeemable NCDs, each having a face value of Rs 1 lakh. These debentures carry an annual coupon rate of 8.6 percent, with a maturity date set for September 24, 2027. The total amount raised includes a base issue size of Rs 2,000 crore, with the remaining Rs 500 crore coming from a green shoe option, which allowed the company to retain excess subscription beyond the base amount.
Non-convertible debentures (NCDs) are long-term debt instruments that cannot be converted into equity shares. By opting for this route, ABReL attracted significant interest from investors, enabling the company to raise substantial capital in a short span. The attractive coupon rate of 8.6 percent per annum likely drew strong interest from institutional investors looking for fixed returns, and the listed nature of the NCDs provides further liquidity and confidence to the investors.
Founded in 2011, Aditya Birla Renewables Ltd has rapidly grown to become a major player in India’s renewable energy sector, offering comprehensive power solutions to both public and private sector clients. The company is known for its focus on sustainability and innovation, primarily through the development of solar, wind, and hybrid power projects across the country.
ABReL has made significant contributions to India’s clean energy goals, implementing 50 renewable energy projects across nine different states. Its operations span across some of India’s most renewable-energy-rich regions, where the company harnesses both solar and wind resources to provide clean energy to its customers.
The fresh infusion of Rs 2,500 crore will likely aid ABReL in its expansion plans, allowing it to undertake new projects and potentially enhance its existing renewable energy infrastructure. With India’s growing focus on reducing carbon emissions and increasing reliance on sustainable energy sources, ABReL is well-positioned to further cement its role as a leading provider of clean energy solutions. The raised capital could also be used to finance the company’s ongoing and future projects, thereby contributing to the larger energy transition underway in the country.
As part of the Aditya Birla Group, a conglomerate known for its diversified business interests and global presence, ABReL continues to benefit from strong backing and financial stability. This NCD issuance marks another milestone for the company in its journey toward scaling up India’s renewable energy capacity, further solidifying its leadership position in the sector.
