Overview – The Aditya Birla Finance NCD Public Issue on Altifi

Details of the offering:

• Name of the Issuer: Aditya Birla Finance Ltd
• Product: Senior Secured Bonds (regulated by SEBI)
• Yield: up to 8.10% p.a.
• Tenure: 3/5/10 Years
• Min Investment: INR. 10,000
• Interest repayment: Monthly/Annual/Cumulative
• Principal repayment: Maturity
• Rating: ICRA & IND “AAA“

Key Highlights:

• Aditya Birla Finance is a 100% subsidiary of Aditya Birla Capital, a listed company with a market cap of ~INR 45,000 crore (As of Sep 26, 2023)
• The AUM of Aditya Birla Finance stood at ₹85,891.2 crore as of June, 2023
• The company has been continuously profitable for the last 10 years
• The company has witnessed strong growth in FY23 - balance sheet grew by 47% to INR 84,122.82 crore, revenue growth by 43% reaching INR 8,267.68 crore and PAT grew by 40% to INR 1,553.76 crore

Overview:

Aditya Birla Finance is registered with the RBI as a non-deposit taking systemically important non-banking financial company (“NBFC-NDSI”). It has been categorized as an ‘Upper Layer’ NBFC under the scale based regulatory framework for NBFCs. It offers end-to-end lending, financing and wealth services to retail, HNI, ultra HNI, MSMEs and corporate customers. As of June 2023, the company had 332 branches over 59 lakh customers.

Management:

Rakesh Singh is the Chief Executive Office of the company since July 2011. He was previously associated with Standard Chartered Bank for over 14 years. He holds a masters of arts from the University of Lucknow, advance management program and leadership and corporate accountability – India programme from Harvard Business School and executive program in business management from Indian Institute of Management, Calcutta. He has more than 25 years of experience in the financial services industry across banking and non-banking financial institutions.

Presence:

As of June 2023, they have a geographical footprint across the nation with 332 branches spread across 297 cities with a focused expansion in Tier III and Tier IV cities. The ‘ABC One Branch’ strategy enables the Company to add to its presence organically at a lower cost. Additionally, the Company is also expanding its distribution channels and sourcing increasingly from Direct & Digital Ecosystems.

Key Financials:

All figures in INR crore

The various Products of the company are as follows:

Loans:

The company offers a diverse range of lending solutions such as business and personal loans, consumer loans, corporate finance, working capital loans, loan against shares, supply chain finance, project finance and structured finance. Over the last few years, it has increased the portion of higher yielding retail loans in its loan book by enhancing its product profile not only in traditional products like personal loans, business loans and LAP, but by launching niche products like ‘Buy Now Pay Later’, ‘Checkout Financing’ and ‘Education Loans’.

The graph below sets forth certain information regarding our product composition as of 30 June, 2023:

The following graph sets out AUM as at 30 June, 2023:

Wealth:

The various wealth solutions include MFs, Digital Gold, FD, Personal Loan, Home Loan, and Tax Filing

Lenders:

The prominent lenders in Aditya Birla Finance include:

Banks:

State Bank of India

Bank of Baroda

Union Bank of India

Deustche Bank

DCB Bank

Axis Bank

PNB Bank

HDFC Bank

Kotak Mahindra Bank

Other Funders:

International Finance Corporation

Sumitomo Mitsui Banking Corporation, Singapore

Export Development Corporation

Disclaimer: The content of this blog should not be considered as financial or investment advice. Readers/Viewers may consult their financial advisor before any investment.