Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  Aditya Birla Capital to raise 1,250 crore through preferential issuance to promoters Grasim, Surya Kiran Investments
BackBack

Aditya Birla Capital to raise ₹1,250 crore through preferential issuance to promoters Grasim, Surya Kiran Investments

Aditya Birla Capital's board has approved a preferential issuance of ₹1,250 crore ($168m) to Grasim and Surya Kiran Investments to augment its capital base and improve leverage ratio.

The proceeds will also be used to fund growth and make investments in subsidiaries and digital platforms. (AP Photo/Gautam Singh)Premium
The proceeds will also be used to fund growth and make investments in subsidiaries and digital platforms. (AP Photo/Gautam Singh)

Aditya Birla Capital on Thursday said that the board of directors has approved preferential issuance of 1,250 crore to Grasim and Surya Kiran Investments. This issuance is a follow-up of 3,000 crore equity fundraising that was approved earlier last month.

Both Grasim and Surya Kiran Investments are part of the promoter and promoter group entity in Aditya Birla Capital.

As per the regulatory filing, the company will raise 1,000 crore from Grasim and 250 crore from Surya Kiran Investments.

Read here: FIIs are net sellers on first day of June, outflow of 71 crore in Indian stocks; DIIs outrun with inflow of 489 cr

The proceeds from the preferential issuance will be used by Aditya Birla Capital 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/joint ventures of the company engaged in certain businesses and technology, IT infrastructure and digital offering platforms.

The company's board approved equity fundraising of up to 3,000 crore on May 11, 2023.

The extraordinary general meeting of shareholders of the Company (“EoGM") is scheduled to be held on June 24, 2023, for seeking approval of the total fund raise proposal of up to 3,000 crore.

On BSE, Aditya Birla Capital's share price closed at 171.70 apiece up by 0.91%.

Read here: Sebi grants extension for public comments on consultation paper regarding mechanism for AMCs

As of March 31, 2023, Aditya Birla Capital manages aggregate assets under management of about 3.6 lakh crore with a total lending AUM of 94,364 crore and gross written premium of 17,787 crore in Life and Health Insurance businesses.

In FY23, the company posted consolidated revenue of 29,999 crore and a profit after tax of 2,057 crore (excluding fair value gains).

ABCL through its subsidiaries/JVs has a strong presence across Protecting, Investing, and Financing solutions catering to the diverse needs of its customers across their life cycle.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Jun 2023, 10:08 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie