Aditya Birla Capital Limited (ABCL) on Friday, June 30, successfully secured funds amounting to Rs 3,000 crores. This was accomplished through a combination of a Qualified Institutional Placement (QIP) of equity shares totaling Rs 1,750 crores and a preferential issuance of equity shares totaling Rs. 1,250 crores to its Promoter and Promoter Group entities, namely Grasim Industries Limited and Surya Kiran Investments Pte. Ltd., respectively.
At its Board of Directors meeting today, the company approved the issue and allotment of 10 crore 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.
Several marquee foreign portfolio investors, sovereign wealth funds and domestic institutional investors participated in the QIP.
The investors included 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.
Chairman of Aditya Birla Group Kumar Mangalam Birla said that this investment is crucial for the company
“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,” Birla said.
“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,” he added.
Moreover, Vishakha Mulye, CEO, ABCL 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,” she added.
ABCL stated in a release that the majority of the funds raised will be used to enhance the capital base, improve the solvency margin and leverage ratio, and meet the growth and funding needs arising from various business opportunities within its subsidiaries.
It would also be used to make investments in one or more subsidiaries or joint ventures of the company engaged in certain businesses and technology, IT infrastructure and digital offering platforms, it added.
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.
(Edited by : Keshav Singh Chundawat)
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