Aditya Birla Capital Limited completes amalgamation of Aditya Birla Finance Limited

Aditya Birla Capital Limited ("ABCL / the Company"), at its board meeting held today, has announced the successful completion of the amalgamation of its wholly owned NBFC subsidiary, Aditya Birla Finance Ltd. ("ABFL") with itself, vide the Order of Hon'ble National Company Law Tribunal ("NCLT"), Ahmedabad Bench, dated March 24, 2025. The Scheme of Amalgamation ("Scheme") is effective from April 01, 2025, and the appointed date for the Scheme was April 01, 2024.

The respective board of directors of ABCL and ABFL had approved the proposed scheme of amalgamation on March 11, 2024, and the process has been completed after receiving requisite approvals from shareholders, creditors, and regulatory / statutory authorities including the Stock Exchanges, Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) and the National Company Law Tribunal (NCLT).

The Board of Directors has also approved the appointment of Ms. Vishakha Mulye as the MD & CEO and Mr. Rakesh Singh as the Executive Director and CEO (NBFC) of the amalgamated entity. These appointments are subject to regulatory and other requisite approvals.

In addition, the Board has approved the appointment of Mr. Nagesh Pinge and Mr. Sunil Srivastav as Independent Directors of the Company.

Commenting on the announcement, Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group said, "India has shown remarkable economic ascent in recent years, with financial services playing a pivotal role in driving this progress. In line with the nation's growth, Aditya Birla Capital has significantly expanded in scale and size, establishing itself as a core growth engine for the Aditya Birla Group. I am confident that the combined strength of our diversified financial products and services will enable us to accelerate growth, drive financial inclusion and be a key contributor to India's vast economic growth opportunities."

Ms. Vishakha Mulye, CEO, Aditya Birla Capital said, "The successful completion of this amalgamation marks a significant step in our transformative growth journey, increasing our strength and agility as a unified larger operating entity. With a simplified corporate structure, we now have better access to capital to drive operational synergies, long-term growth and enhanced value creation for all stakeholders. We remain focused on simplifying finance and providing comprehensive financial solutions that meet our customers' diverse needs, while paving the way for ABCL's next phase of growth."

The rationale and benefits of the proposed amalgamation are as follows:

1. Rationalization and simplification of group structure: The amalgamation has resulted in reduction of legal entities and simplification of the group structure of ABCL.

2. Improved financial stability: ABCL will be converted from a Core Investment Company to an operating NBFC, and this will create a unified larger entity with greater financial strength and flexibility enabling direct access to capital. This will also help the Company maximise its share of opportunities by efficient utilisation and allocation of capital.

3. Likely stakeholder value enhancement: The amalgamation has led to consolidation of businesses and operational synergies, resulting in expansion and long-term sustainable growth. This will enhance the value for various stakeholders of the Company.

4. Increased operational efficiency: The amalgamation has led to seamless implementation of policy changes and reduction in the multiplicity of legal and regulatory compliances.

As of December 31, 2024, Aditya Birla Capital Limited manages aggregate assets under management of over Rs. 5.03 Lakh Crore with a consolidated lending book of over Rs. 1.46 Lakh Crore and gross written premium of Rs. 16,942 Crore in Life and Health insurance businesses in 9M FY25. It reported a consolidated revenue of Rs. 28,376 Crore and a consolidated profit after tax of Rs. 2,468 Crore in 9M FY25. The Company has a pan-India presence with 1,482 branches across all businesses and more than 200,000 agents / channel partners along with several bank partners, as of December 31, 2024.

Shares of Aditya Birla Capital Limited was last trading in BSE at Rs. 184.90 as compared to the previous close of Rs. 185.25. The total number of shares traded during the day was 287937 in over 4905 trades.

The stock hit an intraday high of Rs. 187.70 and intraday low of 182.95. The net turnover during the day was Rs. 53432238.00.

Source : Equity Bulls

Keywords

AdityaBirlaCapital INE674K01013 Merger Amalgamation NBFC AdityaBirlaFinance