Stock Report

Aditya Birla Capital Ltd Successfully Completes Fundraise of Rs 3,000 Crores

Posted On : 2023-06-30 21:51:24( TIMEZONE : IST )

Aditya Birla Capital Limited ("ABCL" or "the Company"), has announced completion of the fund raise of Rs. 3,000 crores, through a Qualified Institutional Placement ("QIP") of equity shares aggregating to Rs 1,750 crores and a preferential issuance of equity shares aggregating to Rs. 1,250 crores to its Promoter and Promoter Group entity, Grasim Industries Limited and Surya Kiran Investments Pte. Ltd., respectively.

The Stakeholders Relationship Committee of the Board of Directors of the Company, at its meeting held today i.e., June 30, 2023, has approved the issue and allotment of 10,00,000,00 equity shares of face value Rs 10 each to eligible Qualified Institutional Buyers ("QIBs") at the issue price of Rs 175 per Equity Share (including a premium of Rs 165 per Equity Share), aggregating to Rs 1,750 crores.

The first-ever QIP transaction of the Company has witnessed a strong response from marquee foreign portfolio investors, sovereign wealth funds and domestic institutional investors who participated in the QIP, including BlackRock, Capital Group, Norges Bank, Royal Bank of Canada, M&G Investments, Abu Dhabi Investment Authority (ADIA), Massachusetts Institute of Technology (MIT), Public Sector Pension Investment Board (PSP) and SBI Life Insurance.

Speaking on the overwhelming response received on the first ever QIP of ABCL, Mr. 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."

Ms. Vishakha Mulye, CEO, Aditya Birla Capital Limited said, "We are deeply honoured and grateful for the incredible support and faith reposed in us by our investors and the promoters, which demonstrate their full confidence in the strength of the franchise. Guided by the 'One ABC. One P&L' approach, we are committed to drive quality and profitable growth, harness the power of data, digital and technology to serve our customers better and create long-term value for our stakeholders."

The proceeds from the fund raise will be predominantly utilized 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 / associates / joint ventures 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.

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. The Company embarked on a transformational journey to accelerate growth across businesses and improve profitability. Following a digital-first and customer-first strategy, ABCL has been bolstering its digital capabilities by scaling up its digital base to build an integrated portfolio of digital assets to serve customers in a frictionless manner and across channels of their choice.

As of March 31, 2023, Aditya Birla Capital Limited manages aggregate assets under management of about Rs. 3.6 lac crores with a total lending AUM of Rs. 94,364 crores and gross written premium of Rs 17,787 crores in Life and Health Insurance businesses. It reported consolidated revenue of Rs. 29,999 crores and a profit after tax of Rs. 2,057 crores (excluding fair value gains) for FY 2023.

Shares of Aditya Birla Capital Limited was last trading in BSE at Rs. 196.35 as compared to the previous close of Rs. 193.60. The total number of shares traded during the day was 7838928 in over 14848 trades.

The stock hit an intraday high of Rs. 196.85 and intraday low of 190.60. The net turnover during the day was Rs. 1534498262.00.