Aditya Birla Group plans to list the newly formed financial services company Aditya Birla Capital Ltd in the stock exchanges on Friday.
The listing of ABCL is the last leg in execution of the composite scheme of arrangement under which Aditya Birla Nuvo was merged with Grasim Industries and the financial services business was subsequently demerged into ABCL for listing.
Kumar Mangalam Birla, Chairman. Aditya Birla Group, will ring the opening bell to signal the listing of ABCL. Formerly known as Aditya Birla Financial Services Ltd, ABCL is the holding company of the financial services businesses of the Aditya Birla Group.
As per the scheme of amalgamation, Grasim issued three shares for every 10 shares of AB Nuvo held by investors. After this, investors in Grasim were given seven shares of Aditya Birla Capital for every one equity share they owned.
The swap ratio ensured that Grasim and Aditya Birla Nuvo investors own 25 per cent of Aditya Birla Capital.
Post merger, the promoters' holding in Grasim will increase to 38.8 per cent from 31.3 per cent and it will be 57.2 per cent in the financial services company. Grasim will continue to hold 26 per cent in the merged entity of Idea Cellular and Vodafone India, which was announced in March.
Last April, shareholders of both Grasim Industries and Aditya Birla Nuvo had approved the merger to create an entity with revenue of Rs 54,824 crore and a net profit of Rs 4,076 crore as of last fiscal.
ABCL will have business interest in life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance.
In June, PremjiInvest, the family owned investment arm of Wipro chairman Azim Premji, had acquired 2.2 per cent stake in ABCL for Rs 704 crore, valuing the company at about Rs 32,000 crore.