Aditya Birla Capital gains on plan to amalgamate Aditya Birla Finance with itself

Aditya Birla Capital rose 2.89% to Rs 184.85 after the company's board and the board of its wholly owned subsidiary Aditya Birla Finance (ABFL) approved the scheme of amalgamation for merging ABFL with the company.

The amalgamation is subject to regulatory and other approvals as may be required.

Aditya Birla Finance, a wholly owned subsidiary of the company, is a non-deposit taking systemically important NBFC (NBFC-ICC).

The proposed amalgamation will result in reduction of legal entities and simplification of the group structure of Aditya Birla Capital.

The proposed amalgamation will also lead to compliance with the Scale based Regulations of RBI which require mandatory listing of Aditya Birla Finance by 30 September 2025.

Post completion of the amalgamation, Aditya Birla Capital will get converted from a holding company to an operating NBFC. This will create a unified large entity with a greater financial strength and flexibility enabling direct access to capital. This will also help the company to maximise its share of opportunities by efficient utilisation and allocation of capital.

Upon the scheme becoming effective, Vishakha Mulye shall assume the role as MD & CEO and Rakesh Singh will assume the role as executive director and CEO (NBFC) of the amalgamated company, subject to regulatory/statutory approvals as may be required for these proposed appointments.

Kumar Mangalam Birla, chairman, Aditya Birla Group said, Our financial services business has scaled smartly to emerge as a core growth engine for the Aditya Birla Group.

The proposed amalgamation will create a strong capital base for Aditya Birla Capital to grow its business and participate in Indias growth story, successfully fulfilling its commitment to empower the financial aspirations of millions of Indians.

Aditya Birla Capital is a listed systemically important non-deposit taking core investment company (NBFC-CIC). As of 31 December 2023, Aditya Birla Capital Limited manages aggregate assets under management of about Rs 4.1 lakh crore with a total lending AUM of Rs 1,15,139 crore and gross written premium of Rs 13,500 crore in Life and Health Insurance businesses. The company has a pan India presence with 1,462 branches across all businesses as of 31 December 2023.

The company had reported consolidated revenue of Rs 26,791 crore and a profit after tax of Rs 2,090 crore for 9M FY 2024.

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