Aditya Birla Capital to name management team for ARC wing

Mumbai: Aditya Birla Capital Ltd, which received a licence to set up an asset reconstruction company (ARC) in September, will name a management team for the new business soon, a top company executive said. “We have identified the core team, including the CEO for the new business, and will make an announcement within the coming weeks,” Ajay Srinivasan, CEO of Aditya Birla Capital, said in an interview.

“We capitalized the ARC last quarter and are ready to begin operations” Srinivasan said, adding “Aditya Birla group has wide operational experience across sectors and is among the best-suited to acquire distressed assets and potentially turn them around.

In an interview in February, Srinivasan had said the company was looking to set up a domestic alternative investment fund along with a partner which could be an offshore fund.

“Those plans are still intact and our focus in the distressed space will largely be in the mid-market space where we see a huge opportunity,” Srinivasan said, adding “the ARC will add to the wide array of offerings of Aditya Birla Capital. The company on Tuesday reported a 91% rise in consolidated net profit at Rs208 crore against Rs109 crore a year ago. Revenue during the quarter grew to Rs4,203 crore from Rs3,353 crore while net profit increased by 44% to Rs824 crore in FY18 from Rs573 crore FY17. Income for the year rose to Rs13,428 crore from Rs11,071 crore.

The company’s board also approved raising Rs3,500 crore by selling shares, global depository receipts, foreign currency convertible bonds, non-convertible debentures or any other financial instruments convertible into equity shares in one or more tranches, Aditya Birla Capital said in a stock exchange filing. It said the money will be raised through one or more public or private offerings or qualified institutional placement.