Aditya Birla Capital Limited (ABCL) has achieved a significant milestone by successfully raising Rs. 3,000 crores through a combination of a Qualified Institutional Placement (QIP) and preferential equity issuance. The QIP involved the sale of equity shares worth Rs. 1,750 crores, while the preferential issuance amounted to Rs. 1,250 crores and was directed towards Grasim Industries Limited and Surya Kiran Investments Pte. Ltd., both belonging to the Promoter and Promoter Group entity.
During a meeting held on June 30, 2023, the Stakeholders Relationship Committee of ABCL’s Board of Directors approved the issuance and allotment of 10,00,000,00 equity shares, each with a face value of Rs. 10, to eligible Qualified Institutional Buyers (QIBs) at an issue price of Rs. 175 per Equity Share. This issue price, which includes a premium of Rs. 165 per Equity Share, resulted in a total of Rs. 1,750 crores being raised.
ABCL’s inaugural QIP transaction attracted strong interest from prominent foreign portfolio investors, sovereign wealth funds, and domestic institutional investors. Renowned names such as 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 participated in the QIP, demonstrating their confidence in ABCL.
Expressing his satisfaction with the overwhelming response to ABCL’s first QIP, Mr. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, emphasized the importance of this investment for the company’s financial services business. He also highlighted the participation of esteemed investors as a vote of confidence in ABCL’s strategic direction and growth potential. Mr. Birla further emphasized the role of India’s financial services industry in driving the country’s economic progress and expressed his belief that ABCL will effectively empower the financial aspirations of millions of customers.
Ms. Vishakha Mulye, CEO of Aditya Birla Capital Limited, expressed gratitude for the tremendous support and faith shown by investors and the promoters. She emphasized their confidence in the strength of ABCL’s franchise and reiterated the company’s commitment to driving quality, profitable growth. Ms. Mulye further emphasized ABCL’s focus on leveraging data, digital technology, and an integrated portfolio of digital assets to enhance customer service and create long-term value for stakeholders.
The proceeds from this fundraising initiative will primarily be utilized to strengthen ABCL’s capital base, enhance solvency margin and leverage ratio, and meet growth and funding requirements across its subsidiaries, associates, and joint ventures. Additionally, investments will be made in specific businesses, technology, IT infrastructure, and digital platforms within the company’s subsidiaries, associates, and joint ventures.
ABCL, through its subsidiaries and joint ventures, offers a comprehensive range of solutions in protection, investment, and financing, catering to the diverse needs of customers throughout their life cycles. The company has embraced a digital-first and customer-centric strategy to accelerate growth and improve profitability. By expanding its digital capabilities and building an integrated portfolio of digital assets, ABCL aims to provide frictionless customer experiences across preferred channels.
As of March 31, 2023, Aditya Birla Capital Limited managed aggregate assets under management worth approximately Rs. 3.6 lac crores. Its total lending assets under management amounted to Rs. 94,364 crores, while the gross written premium in Life and Health Insurance businesses reached Rs. 17,787 crores. In terms of financial performance, ABCL reported consolidated revenue of Rs. 29,999 crores and a profit after tax of Rs. 2,057 crores (excluding fair value gains) for the fiscal year 2023.
About Aditya Birla Capital:
Aditya Birla Capital is a renowned financial services company based in India. With a wide range of offerings in the banking, insurance, and asset management sectors, the company has built a strong reputation in the market. Its commitment to growth and strategic investments positions it as a key player in the financial services industry.
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