Shares of Aditya Birla Capital witnessed a notable uptick of over 3 percent at the opening on the National Stock Exchange (NSE) on March 12. This surge comes in the wake of the recent decision by the board of directors of Aditya Birla Capital Limited, approving the merger of Aditya Birla Finance Ltd with itself on March 11.
In a regulatory filing, Aditya Birla Capital announced that its board had “considered and approved” the amalgamation of Aditya Birla Finance Limited, a wholly-owned subsidiary of the Company. The filing elaborated that “The Scheme inter alia provides for the amalgamation of the Amalgamating Company with the Company, and dissolution of the Amalgamating Company without winding up.”
Following the amalgamation, Aditya Birla Capital is poised to transition from a holding company to an operating non-banking finance company (NBFC), marking the creation of a unified large entity with enhanced financial strength and flexibility, facilitating direct access to capital.
At 9:53 am, the shares were trading 3% higher at ₹185.25.
Aditya Birla Finance presently boasts total assets worth Rs 1,400 crore, while Aditya Birla Capital Limited commands total assets worth Rs 13,000 crore as of December 2023. Vishakha Mulye is set to assume the role of MD & CEO, with Rakesh Singh appointed as Executive Director and CEO (NBFC) of the amalgamated company.
