Aditya Birla Capital Limited (ABCL) has invested nearly ₹500 crore in its wholly owned subsidiary, Aditya Birla Finance Limited (ABFL), through a rights issue. The investment, totaling ₹499.99 crore, was made in the form of equity shares, as per an exchange filing. Despite this capital infusion, there is no change in the shareholding pattern; ABFL remains a wholly owned subsidiary of ABCL.
The investment is aimed at meeting ABFL’s growth and funding needs, as well as enhancing its leverage ratio. The financial services entity operates as an upper layer Non-Banking Financial Company (NBFC) and plays a significant role in ABCL’s business portfolio.
The transaction is categorized as a related-party transaction since ABFL is a material wholly owned subsidiary of ABCL. However, it has been carried out on an arm’s length basis. The equity shares were allotted on September 26, 2024, and the transaction was completed in cash. No additional regulatory approvals were required for this investment.
