29 June 2017
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.”
About Aditya Birla Capital Limited – A Significant Non-Bank
Aditya Birla Capital Limited (“ABCL”) is the holding company of the financial services businesses of the Aditya Birla Group. Having 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, ABCL is committed to serve the end-to-end financial services needs of its retail and corporate customers. ABCL has recently applied to the Reserve Bank of India for seeking license to start asset reconstruction and securitisation business.
ABCL ranks amongst the top fund managers in India with an aggregate AUM (across asset management, private equity and insurance businesses) of Rs.2,463 billion and a lending book of Rs.388 billion as of 31 March 2017. Anchored by over 12,000 employees, ABCL is present across more than 400 cities in India through over 1,300 points of presence and more than 142,000 agents and channel partners. Delivering a wide range of protection, investment, financing and advisory services to its customers, ABCL has emerged as a significant financial services player in the non-bank space.
The Aditya Birla Group
Aditya Birla Capital Limited is a part of the Aditya Birla Group, a USD 40 billion Indian multinational, in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 36 countries across the globe. About 50 per cent of its revenues flow from its overseas operations.
Disclaimer : Certain statements in this “Press Release” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This “Press Release” does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Company’s shares. The financial figures in this “Press Release” have been rounded off to the nearest rupees one crore. The financial results are consolidated financials unless otherwise specified.
Dr. Pragnya RamGroup Executive President, Corporate Communications & CSRAditya Birla Management Corporation Private LimitedAditya Birla Centre, 1st Floor, 'C' WingS.K. Ahire Marg, WorliMumbai 400 030.
91-22-6652 5000 /2499 5000
Fax: 91-22-6652 5741/ 42
A US $43 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 120,000 employees, belonging to 42 different nationalities.
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