Aditya Birla Capital Strengthens Digital Arm with ₹100 Crore Investment

21 Nov 2024 , 01:12 PM

Aditya Birla Capital (ABCL) has made ₹100-crore investment through a rights issue in its wholly owned subsidiary, Aditya Birla Capital Digital Ltd (ABCDL), on November 19, 2024. It will maintain 100% ownership in the subsidiary.

The investment is primarily done to help ABCDL for further growth and funding requirement. At the same time, it would improve group’s digital initiatives.

The rights issue transaction was conducted with a related party at arm’s length and ensured a fair market value of the transactions, with no change in the ownership structure post-investment.

ABCL reported a consolidated profit after tax of ₹1,001 crore, or 42% year-over-year increase and 32% sequential growth, which included a ₹167 crore gain from selling its 50% stake in Aditya Birla Insurance Brokers.

Revenue for the Company Consolidated was up 36% year on year at ₹12,007 crore. The NBFC segment reported a growth in AUM of 23% year on year to ₹1.14 lakh crore, with disbursement growth of 17% y-o-y at ₹19,322 crore.

The housing finance portfolio grew considerably, with AUM increasing by 51% y-o-y at ₹23,236 crore, and disbursements increasing by 113% y-o-y, a sign of pent-up demand. The average AUM in the mutual funds business touched ₹3.83 lakh crore for the quarter, up by 23% year-on-year, with equity AUM up 39%, contributing 47.1% to the overall portfolio.

Life insurance individual first-year premiums grew 33% year-on-year to ₹1,578 crore in the first half of FY25 and denote robust customer acquisition into this segment. Health insurance gross written premiums rose 39% year-on-year to ₹2,171 crore, driven by greater demand for health-related products.

The company’s ABCD Direct-to-Consumer (D2C) platform onboarding crossed 2.5 million customer acquisitions providing payments, loans, and insurances digital products, underlining the company’s consolidation of its digital transformation efforts. Udyog Plus, its B2B platform, also saw growth, adding to the Group’s general digital and business-to-business efforts.