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Premi Invest and Advent International will pick equity stake worth ₹1,100 crore in Aditya Birla Capital Limited . 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 two promoters Grasim Industries Limited (₹770 crores) and Group entities (₹230 crores).
Through these transactions, Aditya Birla Capital will raise primary equity capital of ₹2,100 crores through preferential allotment to the marquee investors and the Promoter/Promoter Group entities.
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 4th September 2019, 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 as per SEBI ICDR Regulations.
ABCL has entered into definitive share subscription agreements with Jomei Investments Ltd, an affiliate of Advent International, one of the largest and most experienced global private equity investors, 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 approximately 4.11 per cent of ABCL’s equity capital. The Promoter and Promoter
Group entities will hold about 70.54 per cent in ABCL upon the completion of the issuance. The funds raised will be utilised to fund the future growth of the Company’s businesses as well as to repay outstanding debt.
ABCL has aggregate AAUM (across asset management and insurance businesses) of over ₹3 lakh croresz, a lending book of ₹62,000 crores across its NBFC and Housing Finance businesses, and gross written premium of over ₹8,000 crores.
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"
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