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Aditya Birla Capital to get 2100 crore from Advent, Premji Invest, others

  • The equity capital will be raised at 100 per share, a 10.62% premium to ABCL’s closing price of 90.40 as of 4 September 2019
  • ABCL has aggregate average assets under management across asset management and insurance businesses of over 3 lakh crore

Mumbai: Aditya Birla Capital Ltd on Thursday said its board has approved raising 2,100 crore through preferential allotment to marquee investors and promoter group entities. The equity capital will be raised at 100 per share, a 10.62% premium to ABCL’s closing price of 90.40 as of 4 September 2019, the company said in a press release.

ABCL will raise Rs1,000 crore worth equity from Jomei Investments Ltd, an affiliate of Advent International, 100 crores from PI Opportunities Fund, an affiliate of Premji Invest, and another 1,000 crores from its promoter company Grasim Industries Limited ( 770 crores) and other promoter group entities ( 230 crores).

ABCL has entered into definitive share subscription agreements with Jomei Investments and PI Opportunities Fund, the company said.

After the issuance, Advent, through its affiliate, will hold 4.15 % of ABCL’s equity capital, and Premji Invest, through its affiliates will hold 4.11% of ABCL’s equity capital. The promoter and promoter group entities will hold about 70.54 % in ABCL upon the completion of the issuance. The funds raised will be utilised to fund the future growth of the company’s businesses as well as to repay outstanding debt, it added.

ABCL has aggregate average assets under management (AAUM) across asset management and insurance businesses of over 3 lakh crores, a lending book of 62,000 crores across its non-banking and housing finance businesses, and gross written premium of over 8,000 crores.

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