The board of Aditya Birla Capital has approved raising ₹1,250 crore from its promoter and promoter group entity via the preferential issue of shares.
This fund raise is part of the proposed equity fund raise of up to ₹3,000 crore, approved by the board on May 11.
The preferential issue will be undertaken at ₹165.1 per equity share, and is subject to shareholders’ approval at the extraordinary general meeting scheduled to be held on June 24.
The NBFC plans to raise ₹1,000 crore from promoter Grasim Industries Ltd and ₹250 crore from promoter group entity Surya Kiran Investments Pte Ltd.
“The funds raised are planned to be used for augmenting the capital base, improving the solvency margin and leverage ratio, meeting the growth and funding requirements,” the company said.
The proceeds will also be used to make investments in one or more subsidiaries/associates/joint ventures of the company engaged in certain businesses and technology, IT infrastructure and digital offering platforms, it added.
As of March 31, Aditya Birla Capital had assets under management of about ₹3.6-lakh crore with a total lending AUM of ₹94,364 crore and gross written premium of ₹17,787 crore across its life and health insurance businesses. It reported consolidated revenue of ₹29,999 crore and a profit after tax of ₹2,057 crore for FY23.