Aditya Birla Capital wraps up monumental Rs 3,000cr fundraise

Aditya Birla Capital Limited (ABCL), the holding company for the financial services businesses of the Aditya Birla Group, has wrapped up an impressive fundraise of Rs 3,000 crores, marking a new milestone in the company’s journey.

The funds were raised through a Qualified Institutional Placement (QIP) of equity shares for Rs 1,750 crores, as well as a preferential issuance of shares for Rs 1,250 crores to its promoter and promoter group entities, namely Grasim Industries Limited and Surya Kiran Investments Pte. Ltd.

On June 30, 2023, the Stakeholders Relationship Committee of Aditya Birla Capital‘s board of directors approved the issue and allotment of 10,00,000,00 equity shares at Rs 175 each, including a premium of Rs 165 per share, to Qualified Institutional Buyers (QIBs), amounting to Rs 1,750 crores.

This first-ever QIP transaction saw substantial backing from leading investors, among which were sovereign wealth funds, global institutional investors, and domestic players like BlackRock, Capital Group, Norges Bank, Royal Bank of Canada, M&G Investments, Massachusetts Institute of Technology (MIT), Abu Dhabi Investment Authority (ADIA), SBI Life Insurance, and Public Sector Pension Investment Board (PSP).

Kumar Mangalam Birla — Aditya Birla Group Chairman 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.”

The capital garnered will predominantly be allocated for enhancing the company’s capital base, increasing solvency margin and leverage ratio, and financing growth opportunities across the company’s subsidiaries, associates, and joint ventures. Investments will also be channeled into the technology, IT infrastructure, and digital platforms of the company’s businesses.

Aditya Birla Capital’s digital-first and customer-first strategy have set it on a path towards transformational growth and improved profitability. As of March 31, 2023, Aditya Birla Capital manages assets under management of about Rs 3.6 lakhs crores, reporting a consolidated revenue of Rs 29,999 crores and a profit after tax of Rs 2,057 crores (excluding fair value gains) for FY 2023.

Vishakha Mulye — Aditya Birla Capital CEO 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.”