Shares of Aditya Birla Capital will be in focus in Monday's trade as BlackRock, Norges Bank, Abu Dhabi Investment Authority (ADIA) and Massachusetts Institute of Technology (MIT), among others, emerged as investors in its just-concluded qualified institutional placement (QIP). Other investors included Public Sector Pension Investment Board (PSP), Capital Group, Royal Bank of Canada, M&G Investments and SBI Life Insurance.
Aditya Birla Capital had on Friday announced the completion of Rs 3,000 crore fundraise via a QIP aggregating to Rs 1,750 crore and a preferential issuance of equity shares aggregating to Rs 1,250 crore. Promoter Grasim Industries and a promoter group entity Surya Kiran Investments Pte participated in the preferential issue.
The stakeholders relationship committee of the board of directors of Aditya Birla Capital, at its meeting on June 30, 2023 approved the issue and allotment of 10,00,000,00 equity shares of face value Rs 10 each to eligible qualified institutional buyers at the issue price of Rs 175 per equity share, aggregating to Rs 1,750 crore.
The proceeds from the fund raise will be predominantly utilised for augmenting the capital base and, improving the solvency margin and leverage ratio, meeting the growth and funding requirements based on the business opportunities across the subsidiaries of the company, as applicable, 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.
Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “This investment marks a pivotal moment in the journey of Aditya Birla Capital. It underscores Aditya Birla Group’s commitment to our rapidly growing financial services business. In addition, the active participation of blue-chip investors serves as a resounding vote of confidence in the company’s strategy and growth platform. The Indian financial services industry will form the bedrock of the country’s economic progress and we hold firm in our belief that Aditya Birla Capital will successfully fulfill its commitment to empower the financial aspirations of millions of customers.”
As of March 31, 2023, Aditya Birla Capital manages aggregate assets under management of about Rs 3.6 lakh crore with a total lending AUM of Rs 94,364 crore and gross written premium of Rs 17,787 crore in Life and Health Insurance businesses. It reported consolidated revenue of Rs 29,999 crore and a profit after tax of Rs 2,057 crore (excluding fair value gains) for FY23.
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