ABCL completes merger of subsidiary Aditya Birla Finance with itself

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Aditya Birla Capital on Monday said it has completed the amalgamation of its wholly-owned subsidiary Aditya Birla Finance with itself to create a unified larger operating NBFC.

This follows the order of the National Company Law Tribunal (NCLT), Ahmedabad Bench, dated March 24, and the scheme of amalgamation is effective from April 1, Aditya Birla Capital Ltd (ABCL) said in a statement.

In March last year, the decision to merge Aditya Birla Finance with the parent entity was taken by the respective boards, subject to receipt of various statutory and regulatory approvals.

The board has also approved the appointments of Vishakha Mulye as the MD and CEO and Rakesh Singh as the executive director of the amalgamated entity, the statement said, adding that these appointments are subject to regulatory and other requisite approvals.

In addition, it said, the board has approved the appointment of Nagesh Pinge and Sunil Srivastav as independent directors of the company.

Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, "In line with the nation's growth, Aditya Birla Capital has significantly expanded in scale and size, establishing itself as a core growth engine for the Group...the combined strength of our diversified financial products and services will enable us to accelerate growth, drive financial inclusion and be a key contributor to India's economic growth opportunities".

With a simplified corporate structure, the company now has better access to capital to drive operational synergies, long-term growth and enhanced value creation for all stakeholders, ABCL CEO Vishakha Mulye said.

"We remain focused on simplifying finance and providing comprehensive financial solutions that meet our customers' diverse needs while paving the way for ABCL's next phase of growth," she said.

The amalgamation will help in improved financial stability, increased operational efficiency and likely stakeholder value enhancement, among others.

As of December 31, 2024, ABCL managed assets under management of over Rs 5.03 lakh crore with a consolidated lending book of over Rs 1.46 lakh crore and gross written premium of Rs 16,942 crore in Life and Health insurance businesses in 9M FY25.

It reported a consolidated revenue of Rs 28,376 crore and a consolidated profit after tax of Rs 2,468 crore in 9M FY25. The company has a pan-India presence with 1,482 branches across all businesses and more than 2,00,000 agents/channel partners along with several bank partners as of December 31, 2024.