Aditya Birla Capital to raise ₹1,250 crore through preferential issuance to promoters Grasim, Surya Kiran Investments
1 min read 01 Jun 2023, 10:08 PM ISTAditya 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.
PremiumAditya 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.
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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%.
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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.
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