Aditya Birla Capital plans to raise Rs 2,000 crore ($226.96 million) through the sale of multiple maturity bonds, as per a recent Reuters report. The report, quoting sources, added that the company will raise Rs 500 crore each through two-year and six-month bonds at a coupon of 146 basis points above three-month overnight index swaps, and five-year bonds at a coupon of 7.52 per cent.
Furthermore, the report elaborates that the company is also targeting Rs 500 crore each through the re-issue of 7.3789 per cent February 2028 bonds and 7.2959 per cent September 2028 bonds.
Motilal Oswal on Adiya Birla Capital
Looking at Aditya Birla Capital’s performance and strategic shift in increasing digital offerings and reducing exposure in the small ticket loans, Motilal Oswal has maintained a ‘Buy’ on the company.
A Motilal Oswal report highlighted that Aditya Birla Capital has gradually diversified its portfolio, lending, insurance and asset management. Through its digital infrastructure, such as the ABCD App, the company has expanded its MSME and retail lending.
One major strategic shift that the company has recently concluded is the amalgamation of the subsidiary company Aditya Birla Finance with itself. Motilal Oswal added that the move will create a unified and large entity and will increase its financial capabilities and give better operational flexibility.
Aditya Birla Capital asset quality control
Motila Oswal pointed out that the company has taken several steps in recent months to improve its credit quality. The company has tightened underwriting standards and is strategically reducing exposure to small-ticket loans.
Additionally, Aditya Birla Capital has recalibrated digital partnerships in its personal and consumer loans segment. Mostila Oswal says that these strategic shifts have helped the company to maintain asset quality, which is significantly stronger than that of its peers.