Aditya Birla Capital to raise Rs 1,250 crore via preferential issue to promoters

Aditya Birla Capital Limited had earlier announced that its Board of Directors had approved a fund raise of up to Rs 3,000 crore.

In a follow-up to this, on Thursday, the Company’s Board of Directors approved preferential issuance of Rs 1,250 crore to its Promoter and Promoter Group entity, out of the total approved equity fund raise of up to Rs 3,000 crore.

The preferential issuance will be undertaken at the price of Rs 165.1 per equity share.

The participation from the Promoter and Promoter Group would be as follows: 

• ~ Rs 1,000 crores from Grasim Industries Limited (Promoter)
• ~ Rs. 250 crores from Surya Kiran Investments Pte. Ltd. (Promoter Group entity)

The extraordinary general meeting of shareholders of the Company (“EoGM”) is scheduled to be held on June 24, 2023 for seeking an approval of the total fund raise proposal of upto Rs 3,000 crore.

According to the filing, the Company 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. 

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.

Source: Media reports