Aditya Birla Renewables Limited (ABReL), the renewable energy arm of the Aditya Birla Group, has secured Rs 25 billion via a private placement of non-convertible debentures (NCDs). The funds will be used to fuel ABReL’s expansion, reduce existing debt, and support corporate activities. Underwritten by Grasim Industries, the NCD issue attracted strong interest from mutual funds, leading to an oversubscription. The base issue size of Rs 20 billion was fully subscribed, and the green shoe option for Rs 5 billion was exercised.
ABReL, which operates 1 GW across 42 projects in 10 states, aims to expand its capacity to 2 GW by the end of the year. The raised capital will help the company invest in new projects, upgrade infrastructure, and repay debt, aligning with the Aditya Birla Group’s sustainability and decarbonisation goals.
The NCDs, rated and redeemable, carry an 8.6% annual coupon rate with a three-year maturity period, and will be listed on BSE Ltd. Axis Bank facilitated the issue. ABReL plays a crucial role in supporting the Group’s manufacturing businesses, including Grasim, Ultratech, Hindalco, and Birla Carbon, in achieving net-zero emissions by 2050.