Mumbai: Aditya Birla Capital on Wednesday announced a Rs 4,000 crore fund raise from its parent and International Finance Corporation to fund future growth.
Aditya Birla Group will invest Rs 3,080 crore, and IFC has put Rs 980 crore through the preferential issue of shares, which was cleared by ABC's board on Wednesday.
The preferential issuance will be undertaken at the price of Rs 356.02 per equity share, which is a premium to Wednesday's close of Rs 352.70 apiece on the counter.
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The proceeds from the issuance will be utilised for meeting the growth objectives, including augmentation of the capital base, funding requirements for lending business and other general corporate purposes, such as investment in subsidiaries/ joint ventures/associates of the company, according to a statement.
Group Chairman Kumar Mangalam Birla said financial services have become central to India's economic transformation, driving capital formation, expanding financial inclusion and supporting the formalisation of the economy at scale.
"As the sector evolves, institutions with diversified platforms, strong governance and technology-led execution are increasingly shaping the trajectory of growth," Birla added.
The company's managing director and chief executive Vishakha Mulye said the capital infusion will enable it to participate in the growth opportunities in India, deepen customer engagement, and deliver digital-first solutions.
IFC's regional vice president for Asia and the Pacific, Sarvesh Suri, said the multilateral financier is aiming to help bring small businesses' ideas to life through the funding.
"By leveraging ABCL's scale, over 1,50,000-strong MSME client base, and digital capabilities, we aim to expand access to responsible financing for entrepreneurs and businesses in job-rich sectors, enabling them to invest, grow incomes, create more and better jobs, and strengthen local economies," Suri added.
Aditya Birla Capital is present in lending, investments, insurance, and payments.
The non-bank lender's portfolio stands at over Rs 2 lakh crore, and the combined assets under management of the asset management and insurance businesses stand at Rs 5.9 lakh crore.
The ABC scrip closed 0.41 per cent up at Rs 352.70 apiece on the BSE on Wednesday against a 0.16 per cent gain on the benchmark.
