Aditya Birla Capital to merge with Aditya Birla Finance

The proposed amalgamation will result in reduction of legal entities and simplification of the group structure of Aditya Birla Capital, the company said.

Post completion of the amalgamation, Aditya Birla Capital will get converted from a holding company to an operating NBFC.

This will create a unified large entity with a greater financial strength and flexibility enabling direct access to capital. This will also help the company to maximise its share of opportunities by efficient utilisation and allocation of capital.

The proposed amalgamation will lead to consolidation of the businesses and operational synergies and resulting in the expansion and long-term sustainable growth. This will enhance value for various stakeholders of the company, Aditya Birla Capital said.

The proposed amalgamation will result in compliance with the scale based Regulations of RBI which require mandatory listing of Aditya Birla Finance by September 30, 2025.

Commenting on the announcement, Kumar Mangalam Birla, Chairman Aditya Birla Group said, “The financial services sector is the bedrock of India’s growth story. Our financial services business has scaled smartly to emerge as a core growth engine for the Aditya Birla Group. The proposed amalgamation will create a strong capital base for Aditya Birla Capital to grow its business and participate in India’s growth story, successfully fulfilling its commitment to empower the financial aspirations of millions of Indians.”

Vishakha Mulye, CEO, Aditya Birla Capital said, “The proposed amalgamation will help us to serve our customers better, achieve efficient utilisation of capital, enhance operational efficiencies, and holds the potential to create long-term value for all our stakeholders.”

Upon the scheme becoming effective, Vishakha Mulye shall assume the role as MD and CEO and Rakesh Singh will assume the role as Executive Director and CEO (NBFC) of the amalgamated company, subject to regulatory/statutory approvals as may be required for these proposed appointments.

As of December 31, 2023, Aditya Birla Capital Limited manages aggregate assets under management of about ₹4.1 lakh crore with a total lending AUM of ₹1,15,139 crore and gross written premium of ₹13,500 crore in life and health Insurance businesses.