Aditya Birla Capital to raise ₹1,250 crore from Grasim, Surya Kiran Investments
The fund raise is part of the company’s plan to raise up to ₹3,000 crore
PremiumMUMBAI : Aditya Birla Capital Limited (ABCL), the holding company of the group’s financial services business, on Thursday said it plans to raise ₹1,250 crore through a preferential issue of shares to its promoter and promoter group companies.
The shares will be issued to its promoter Grasim Industries Ltd and promoter group entity Surya Kiran Investments Pte Limited, according to an exchange filing. The fund raise is part of the company’s plan to raise up to ₹3,000 crore.
The funds raised, it said, will be used for augmenting the capital base, improving the solvency margin and leverage ratio, meeting the growth and funding requirements and to make investments in one or more subsidiaries, associates or joint ventures engaged in certain businesses and technology, IT infrastructure and digital offering platforms.
On 11 May, Aditya Birla Capital had announced that its board approved a fundraise of up to ₹3,000 crore. On Thursday, it said that the preferential issue will be done at ₹165.1 per share, including a premium of ₹155.1 per share. The preferential issue is subject to regulatory and statutory approvals, including approval of ABCL's shareholders.
Under the proposed plan, Grasim Industries Ltd will receive 60.6 million shares, for ₹1,000 crore and Surya Kiran Investments Pte Ltd will be allotted 15.1 million shares valued at ₹250 crore.
Aditya Birla Capital said it will seek approval for the preferential issue during an extraordinary general meeting (EGM) on 24 June
As of 31 March, Aditya Birla Capital’s aggregate assets under management (AUM) stood approximately ₹3.6 trillion and its total lending AUM was at ₹94,364 crore and a gross written premium of ₹17,787 crore in its life and health insurance businesses. ABCL reported consolidated revenue of ₹29,999 crore and a profit after tax of ₹2,057 crore (excluding fair value gains) for the fiscal year 2023.
Shares of Aditya Birla Capital ended 0.91% higher at ₹171.7 apiece on the BSE.
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