Aditya Birla Capital Pumps Rs 900 Crore into Subsidiaries for Growth

27 Dec 2023 , 11:44 AM

Aditya Birla Capital Ltd (ABCL) is infusing Rs 850 crore into its wholly-owned subsidiary, Aditya Birla Finance Ltd (ABFL), through a rights issue.

The investment involves the subscription of equity shares of ABFL on rights basis, with a total cash consideration of Rs 849,99,99,456, as stated in a regulatory filing.

ABCL is also investing Rs 50 crore in another wholly-owned subsidiary, Aditya Birla Capital Digital Ltd (ABCDL).

The purpose of the investments in both entities is to meet their growth and funding requirements, according to the exchange filing.

The infusion of funds will not impact ABCL’s existing 100 percent shareholding in both subsidiaries.

This announcement follows ABCL’s quarterly results for the June-September period, where the company reported a 44 percent increase in net profit to Rs 705 crore.

In the same quarter, revenue from operations rose by 13 percent to Rs 7,721 crore compared to the year-ago period.

For feedback and suggestions, write to us at [e-mail]