Aditya Birla Group, a prominent conglomerate, is set to invest Rs 1,250 crore into its financial services arm, Aditya Birla Capital Ltd. The board of Aditya Birla Capital Ltd. recently approved a preferential issue of Rs 1,250 crore to the group’s promoter and promoter group company. This strategic move aims to strengthen the capital base, improve solvency margins, and support the expansion plans of the financial services arm.
To raise the required funds, Aditya Birla Capital Ltd. intends to issue equity shares at a price of Rs 165.1 per share, subject to approval from shareholders. Grasim Industries, the group’s largest company, plans to contribute Rs 1,000 crore, while Surya Kiran Investments, another group entity, will contribute Rs 250 crore towards the investment.
The infusion of capital will play a crucial role in enhancing the financial services arm’s technological, business, and service platforms. The funds will be utilized to bolster the capital base, improve the solvency margin, and strengthen the leverage ratio. Moreover, the investment will support the expansion plans of Aditya Birla Capital Ltd. and its subsidiaries, affiliates, and joint ventures.
Vishakha Mulye, the managing director of Aditya Birla Capital Ltd., has reassured the market that the company is committed to providing funding to companies in need to support their growth ambitions. The capital infusion of Rs 1,250 crore is part of the broader plan to raise up to Rs 3,000 crore, which will be put to vote at an extraordinary general meeting scheduled for June 24.
The market responded positively to the news, with Aditya Birla Capital Ltd.’s shares closing 0.91% higher at Rs 171.70 per share on Thursday.
The investment by Aditya Birla Group into its financial services arm reflects the group’s commitment to strengthen its presence in the financial sector and support the growth and expansion of its diverse businesses. As the conglomerate continues to invest in key sectors and explore new opportunities, it reaffirms its position as a leading player in the Indian business landscape.
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