Premji Invest, Advent pick stake in Aditya Birla Capital for ₹1,100 crore

Our Bureau Mumbai | Updated on September 05, 2019 Published on September 05, 2019

ABCL plan to raise ₹ 2,100 crore

Premji Invest and Advent International will pick equity stake worth ₹1,100 crore in Aditya Birla Capital Ltd (ABCL). While Advent is investing ₹1,000 crore, Premji Invest is picking equity for ₹100 crore.

Another ₹1,000 crore is being pumped in by the promoter Grasim Industries Ltd (₹770 crore) and by promoter group entities (₹230 crore).

“ABCL announced that it has received approval from its board of directors to raise primary equity capital of ₹2,100 crore through a preferential allotment to certain marquee investors and the promoter / promoter group entities,” it said in a statement on Thursday.

The funds will be used to grow company’s businesses and repay outstanding debt, it further said.

The equity capital will be raised at ₹100 per share, which is at a 10.62 per cent premium to the ABCL closing price of ₹90.40 as of September 4 and is subject to customary closing conditions, including regulatory and shareholder approvals.

The subscription price of ₹ 100 per share is at a premium of 5.79 per cent over the floor price.

EGM on Oct 5

The extraordinary general meeting of shareholders of ABCL is scheduled for October 5.

ABCL has entered into definitive share subscription agreements with Jomei Investments Ltd, an affiliate of Advent International (“Advent”), a global private equity investor, and PI Opportunities Fund, an affiliate of Premji Invest.

Upon the completion of the issuance, Advent, through its affiliate, will hold approximately 4.15 per cent of ABCL’s equity capital, while Premji Invest, through its affiliates will hold about 4.11 per cent of ABCL’s equity capital.

The promoter and promoter group entities will own about 70.54 per cent in ABCL upon the completion of the issuance.

ABCL has aggregate AAUM (across asset management and insurance businesses) of over ₹3 lakh crore, a lending book of ₹62,000 crore across its NBFC and Housing Finance businesses, and gross written premium of over ₹8,000 crore.

ABCL Chief Executive Ajay Srinivasan said, “This investment reflects not only the commitment of the Aditya Birla Group to our financial services business, but also the partnership and recognition of a marquee global investor such as Advent International and the continued commitment and conviction of Premji Invest.”

ABCL scrip gained 1.16 per cent and closed at ₹ 91.45 apiece on the BSE.

Published on September 05, 2019
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