Aditya Birla Capital raises Rs 3,000 crore from investors and promoters

Mumbai: Aditya Birla Capital Limited (ABCL) has raised Rs. 3,000 crores through a combination of fundraising initiatives. The company completed a Qualified Institutional Placement (QIP) of equity shares amounting to Rs. 1,750 crores, along with a preferential issuance of equity shares totaling Rs. 1,250 crores to its promoter and promoter group entities, Grasim Industries and Surya Kiran Investments respectively.

During a recent meeting the company’s directors approved the issue of shares to Qualified Institutional Buyers (QIBs) at an issue price of Rs. 175 per Equity Share, including a premium of Rs. 165 per Equity Share. This allocation of shares raised a substantial amount of Rs. 1,750 crores.

The QIP drew interest from foreign portfolio investors, sovereign wealth funds, and domestic institutional investors. Notable participants in the QIP 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.

Speaking on the issue, Kumar Mangalam Birla, chairman of the Aditya Birla Group, said, "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. 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."

Vishakha Mulye, CEO of Aditya Birla Capital Limited, expressed her gratitude and appreciation for the unwavering support and confidence shown by the investors and promoters. “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 said.

The proceeds from the fund raise will be primarily utilized to bolster the company's capital base, improve the solvency margin and leverage ratio, meet the growth and funding requirements across its subsidiaries, associates, and joint ventures, as well as make strategic investments in specific businesses, technology, IT infrastructure, and digital offering platforms.


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