Aditya Birla Capital Limited Attracts Investment By Premji Invest; Transaction Values ABCL At Rs.32,000 Crore
Mumbai: Aditya Birla Capital Limited (“ABCL” or “the Company”), formerly known as Aditya Birla Financial Services Ltd., is the holding company of the financial services businesses of the Aditya Birla Group.
The Company had entered into a composite scheme of arrangement (“Scheme”) with Aditya Birla Nuvo Limited (“ABNL”) and Grasim Industries Limited (“Grasim”), basis which the financial services undertaking of Grasim will be transferred to and vested in the Company by way of demerger effective from 4 July 2017, following which ABCL shall be listed after obtaining necessary approvals.
In accordance with the Scheme, on or prior to 4 July 2017, the Company is permitted to issue additional equity shares, to one or more financial investors.
ABCL has, today, entered into a definitive Share Subscription Agreement (SSA) with PI Opportunities Fund – 1 (“the Fund”), an affiliate of Premji Invest, a leading Private Equity fund in India. As per the SSA, subject to the customary closing conditions, the Fund will subscribe to about 2.2 per cent of the post Scheme fully diluted equity share capital of ABCL. The proposed transaction values ABCL at Rs.32,000 crore on a post money basis.
This is in recognition of the quality and size of business created by ABCL, in just under a decade, and it’s consistent and solid performance, as a significant financial services conglomerate in the non bank space.
Today, ABCL ranks amongst the top fund managers in India with an aggregate AUM (across asset management, private equity and insurance businesses) of Rs.2.46 lakh crore and a lending book of Rs.38.8 thousand crore as of 31 March 2017.
ABCL enjoys a strong presence across life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance businesses.
Aditya Birla Group Chairman, Kumar Mangalam Birla, said, “We welcome a marquee investor like Premji Invest to join us in ABCL’s journey ahead. This transaction underpins the inherent strength of our financial services business.”
Ajay Srinivasan, Chief Executive – Aditya Birla Capital, added, “It is indeed a pleasure to have an investor of the stature of Premji Invest recognise the value created by ABCL. We recognise and value the trust being placed on us and will keep our focus on creating value for all our shareholders.”
Premji Invest spokesperson said, “Premji Invest is excited to partner with ABCL, one of India’s leading non-Bank financial services institutions. ABCL has built a high-quality customer franchise through a profitable and scalable business model, and achieved significant market leadership in certain segments. We believe this partnership will create significant value for all stakeholders.”
Premji Invest picks 2.2% stake in Aditya Birla Capital
