Aditya Birla Capital advances on fund raising plans

Aditya Birla Capital rose 1.44% to Rs 91.70 after the company said its board approved raising Rs 2100 crore through preferential allotment of equity equity shares to certain marquee investors and promoter group entities.

The equity capital will be raised at Rs 100 per share, subject to regulatory and shareholder approvals. The extraordinary general meeting of shareholders is scheduled on 5 October 2019.

As per the proposal, the company will issue 7.70 crore fully paid-up equity shares at Rs 100 each, aggregating to Rs 770 crore on a preferential basis to Grasim Industries, the promoter of the company.

The company will also issue 2.30 crore fully paid-up equity shares at Rs 100 each, aggregating to Rs 230 crore on a preferential basis to Surya Kiran Investments, IGH Holdings and Pilani Investment and Industries Corporation, members of promoter group of the company.

Further, the firm will issue 1 crore fully paid-up equity shares at Rs 100 each, aggregating to Rs 100 crore on a preferential basis to PI Opportunities Fund-I, an affiliate of Premji Invest.

The company will issue 10 crore equity shares at Rs 100 each, aggregating to Rs 1000 crore on a preferential basis to Jomei Investments, an affiliate of Advent International, one of the largest and most experienced global private equity investors.

Upon the completion of the issuance, Advent, through its affiliate, will hold approximately 4.15% of ABCL's equity capital, while Premji Invest, through its affiliates will hold approximately 4.11% of ABCL's equity capital. The promoter and promoter group entities will hold about 70.54% 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. The announcement was made before market hours today, 5 September 2019.

Shares of Aditya Birla Capital rose 4.74% in two trading sessions to its current market price of Rs 91.70, from a recent closing low of Rs 87.55 on 3 September 2019.

On BSE, 65,000 shares were traded in Aditya Birla Capital counter, compared to a 2-week average of 1.25 lakh shares. The share price hit an intraday high of Rs 92.55 and an intraday low of Rs 91.10.

It hit a 52-week high of Rs 138.75 on 7 September 2018 and a 52-week low of Rs 77.55 on 14 February 2019.

Aditya Birla Capital is the holding company of the financial services businesses of the Aditya Birla Group.

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