Key Points of Aditya Birla Capital Divest Full Stake in Insurance Brokerage Unit:
- Aditya Birla Capital will sell its entire stake in Aditya Birla Insurance Brokers Ltd., its subsidiary.
- The transfer of 25.65 lakh shares representing 50.002% of the stake will be made to Edme Services Pvt. Ltd., a member of the Samara Capital Group.
- Infocyber India Pvt. Ltd., the other shareholder of Aditya Birla Insurance Brokers, will sell another 25.64 lakh shares or 49.998% of the company to Edme Services.
- The transaction will be made at an enterprise value of Rs. 455 crore.
- Aditya Birla Insurance Broker is a non-material subsidiary but contributed Rs. 684.52 crore to the consolidated revenue of Aditya Birla Capital and Rs. 64.85 crore to its net worth in the fiscal year ending March 2022.
- Aditya Birla Capital and Infocyber India may receive additional consideration after five years from the closing of the stake sale.
- Aditya Birla Capital will be entitled to receive 50.002% of any consideration, including the additional one, paid by Edme Services in lieu of 100% shareholding of Aditya Birla Insurance Brokers.
- On Monday, the Aditya Birla Capital stock finished 1.39% higher compared to a 0.22% increase in the benchmark Sensex.
Details of Aditya Birla Capital Sell Full Stake in Insurance Brokerage Unit:
Aditya Birla Capital has made an important decision to divest its entire stake in Aditya Birla Insurance Brokers Ltd., its subsidiary. According to an exchange filing made by the company on Monday, the board has approved the transfer of 25.65 lakh shares, representing 50.002% of the stake, to Edme Services Pvt. Ltd., a member of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund.
In addition, the board also cleared a share purchase agreement between Aditya Birla Capital, Aditya Birla Insurance Brokers, Infocyber India Pvt. Ltd., and Edme Services. Infocyber India, the other shareholder of Aditya Birla Insurance Brokers, will sell another 25.64 lakh shares, or 49.998% of the company, to Edme Services.
The transaction will take place at an enterprise value of Rs. 455 crore, according to Aditya Birla Capital’s statement. Despite being a non-material subsidiary, Aditya Birla Insurance Broker contributed Rs. 684.52 crore to the consolidated revenue of Aditya Birla Capital and Rs. 64.85 crore to its net worth in the fiscal year ending March 2022. This amounted to 3.08% and 0.42% of the company’s consolidated revenue and net worth, respectively, for the fiscal year under review.
As per the share purchase agreement, Aditya Birla Capital and Infocyber India may receive an additional consideration after five years from the closing of the stake sale, subject to certain conditions. Aditya Birla Capital stated that the company will be entitled to receive 50.002% of any consideration, including the additional one, paid by Edme Services in lieu of 100% shareholding of Aditya Birla Insurance Brokers.
On Monday, the Aditya Birla Capital stock finished 1.39% higher, compared to a 0.22% increase in the benchmark Sensex.
About Aditya Birla Capital:
Aditya Birla Capital serves as the parent company for the following financial services businesses: Aditya Birla Finance Limited, Aditya Birla Health Insurance Limited, Aditya Birla Housing Finance Limited, and Aditya Birla Insurance Brokers Limited.
For More Latest News Click Here
