Aditya Birla Capital launches QIP to raise funds - Shares double in over a year

It has been a year since Vishakha Mulye became CEO of the company since June 1, 2022. Since then, share price of Aditya Birla Capital has doubled, rising 104 percent.

Aditya Birla Capital was also part of CNBC-TV18's dealing room chatter on Monday, when Nimesh Shah mentioned that the company is likely to launch a QIP soon. The official announcement was made within a few hours.

Earlier this month, the financial services company had also announced that it plans on raising Rs 1,250 crore through preferential issuance of equity shares to promoters Grasim Industries and Surya Kiran investments.

Both the preferential issue and the QIP will combine to meet the Rs 3,000 crore equity fund raise that the company's board had approved in May.

Of the total Rs 1,250 crore, Aditya Birla Capital will raise Rs 1,000 crore from promoter Grasim and Rs 250 crore from promoter group entity Surya Kiran Investments.

Those funds raised would be used for augmenting the capital base, improving the solvency margin as well as leverage ratio, meeting the growth and funding requirements, and making investments in one or more subsidiaries/joint ventures of the firm engaged in certain businesses and technology, IT infrastructure, and digital offering platform.

"The stock confirmed a trend reversal last November with the formation of higher highs and higher lows. Since then, the stock has been respecting its 21-EMA on the weekly charts, which implies any decline towards 155-160 could be used to enter the stock for the long-term," Gaurav Bissa of InCred Equities said. The market participants who have bought earlier can continue to hold with trailing stop lossses for an upside towards Rs 230, he said.

Shares of Aditya Birla Capital are trading 3.6 percent higher at Rs 187.70. The stock is trading at a 52-week high and has gained 21 percent so far this year. The stock is the third-best performer on the Nifty Midcap index in today's session.