Aditya Birla Capital Plans Rs 1,750 Crore QIP, Shares Surge

27 Jun 2023 , 12:23 PM

Aditya Birla Capital, an Indian financial services firm, has proposed to issue equity shares worth up to Rs 1,750 crore ($213.5 million) through a qualified institutional placement (QIP), as per a term sheet viewed by Reuters on Tuesday.

The placement’s issue price is set between Rs 170 and Rs 176 per share, representing a discount of 6.2% to 2.9% from Monday’s closing price of Rs 181.25.

As per data, following the announcement, the company’s shares soared nearly 3%, reaching their highest level in over five years. The proceeds from the QIP will be utilized by Aditya Birla Capital to invest in its subsidiaries, joint ventures, associates, and other corporate purposes, according to the term sheet.

BofA Securities India, Jefferies India, Axis Capital, and ICICI Securities have been appointed as the book-running managers for the QIP. Over the past two months, the Aditya Birla Group-owned company has already obtained approval for raising funds twice, with amounts of up to Rs 30 billion and Rs 12.5 billion, respectively.

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