Aditya Birla Capital Limited (ABCL) said it has successfully completed a fund raise amounting to Rs 3,000 crore through a combination of a Qualified Institutional Placement (QIP) and preferential issuance.
The company’s Stakeholders Relationship Committee of the Board of Directors approved the issuance and allotment of equity shares during a meeting held on 30 June 2023.
The fund raise involved a QIP of equity shares, which raised Rs 1,750 crore, and a preferential issuance of equity shares amounting to Rs 1,250 crore. Grasim Industries Limited, a promoter and promoter group entity, and Surya Kiran Investments Pte. Ltd., participated in the preferential issuance.
ABCL’s QIP witnessed substantial interest from a diverse range of investors, including renowned foreign portfolio investors, sovereign wealth funds, and domestic institutional investors. Notable participants in the QIP included BlackRock, Capital Group, Norges Bank, Royal Bank of Canada, M&G Investments, Abu Dhabi Investment Authority (ADIA), Massachusetts Institute of Technology (MIT), Public Sector Pension Investment Board (PSP), and SBI Life Insurance.
The company successfully allotted 10,00,000,00 equity shares with a face value of Rs 10 each to eligible Qualified Institutional Buyers (QIBs) at an issue price of Rs 175 per equity share. This price included a premium of Rs 165 per equity share. The total amount raised through the QIP stood at Rs 1,750 crore.
In a statement, Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “This investment marks a pivotal moment in the journey of Aditya Birla Capital. It underscores Aditya Birla Group’s commitment to our rapidly growing financial services business. In addition, the active participation of blue-chip investors serves as a resounding vote of confidence in the company’s strategy and growth platform. The Indian financial services industry will form the bedrock of the country’s economic progress and we hold firm in our belief that Aditya Birla Capital will successfully fulfill its commitment to empower the financial aspirations of millions of customers.”