Aditya Birla Nuvo jumps after forming subsidiary to provide wellness services

Aditya Birla Nuvo jumped 5.37% to Rs 1,185 at 10:30 IST on BSE after the company said that it has incorporated wholly owned step down subsidiary for providing incentivized wellness and related programs and services.

The announcement was made after market hours yesterday, 27 June 2016.

Meanwhile, the BSE Sensex was up 71.60 points, or 0.28%, to 26,475.61.

On BSE, so far 40,086 shares were traded in the counter, compared with an average volume of 39,134 shares in the past one quarter. The stock hit a high of Rs 1,197.65, which was also a 52-week high for the stock. The stock hit a low of Rs 1,125 so far during the day. The stock hit a 52-week low of Rs 685 on 29 February 2016. The stock had outperformed the market over the past one month till 27 June 2016, gaining 7.32% compared with 0.94% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 34.85% as against Sensex's 4.2% rise.

The large-cap company has an equity capital of Rs 130.22 crore. Face value per share is Rs 10.

Aditya Birla Nuvo said that its subsidiary, Aditya Birla Financial Services Company (ABFSL) incorporated a wholly owned subsidiary company, Aditya Birla Wellness Private Ltd. (ABWPL) with an authorised capital of Rs 10 lakhs and issued capital of Rs 5 lakhs thus making ABWPL its step down subsidiary. The promoters or promoter group of Aditya Birla Nuvo has no interest in ABWPL. MMI Holdings company's joint venture partner for health insurance and wellness would subscribe to 49% equity of ABWPL and the balance 51% would continue to be held by ABFSL. ABWPL is incorporated for the purpose of conducting the business of providing and servicing of incentivized wellness and related programs and services.

On a consolidated basis, Aditya Birla Nuvo (ABNL)'s net profit fell 1.5% to Rs 326.69 crore on 9.2% decline in net sales to Rs 6318.41 crore in Q4 March 2016 over Q4 March 2015.

Aditya Birla Nuvo is a business conglomerate. It commands leadership position across its financial services, telecom, linen and manufacturing businesses.

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