Aditya Birla Capital Invests ₹400 Crore in Housing and Digital Growth

11 Mar 2025 , 10:58 AM

Aditya Birla Capital Ltd (ABCL) has invested ₹300 crore in its wholly-owned subsidiary, Aditya Birla Housing Finance Ltd (ABHFL), through a rights issue. The investment is expected to bolster ABHFL’s financial position and improve its leverage ratio.

The capital infusion was in line with ABCL’s strategy to increase its housing finance operations and support future growth, Chandak said in the statement. Apart from this new investment, ABCL’s holding in ABHFL will remain at 100 per cent. The allotment of the equity shares was successful on 10th March 2025.

The deal is being classified as a related-party transaction but was completed at arm’s length in order to facilitate transparency and remain in good standing with regulators. Separately, ABCL had earlier invested ₹100 crore in Aditya Birla Capital Digital Ltd (ABCDL) via rights issue.

The investment in ABCDL was completed on November 19, 2024, when ABCL’s 100% ownership stake in the digital subsidiary was preserved. The part of the ₹100 crore investment was supposed to meet ABCDL’s financial needs and improve its digital capabilities.

Aditya Birla Capital Group (ABCG) is an ABCDL Digital Company that focuses on enhancing innovation and digital transformation. ABCL, in a stock exchange filing, confirmed the investment along with the transaction being done at arm’s length to ensure appropriate valuation.

ABCL, in turn, is committed to the investments to strengthen the company’s financial subsidiaries and enhance its footprint in housing finance and digital financial services. The ₹300 crore investment in ABHFL and ₹100 crore investment in ABCDL reflects the long-term vision of growth for the company.

Both investments had the hallmark of related-party transactions but were structured to be executed at arm’s length to comply with financial regulations. ABCL’s ownership in ABHFL and ABCDL would continue to stay at 100% even after the capital infusions.

This also indicates that the company is taking a strategic approach when it comes to financial inclusivity and engagement through digital innovation and housing finance expansion. These capital infusions provide stability in financing, business growth, and make ABCL a prominent player in the financial services space in India.