Aditya Birla Real Estate up 3% on divesting paper unit for Rs 3,498-crore

Don't want to miss the best from Business Standard?

Aditya Birla Real Estate share price: Aditya Birla Real Estate shares rose up to 3 per cent in intraday deals to a high of Rs 2,028.30 per share, on Tuesday, April 1, 2025. 

 

The rise in the Aditya Birla Real Estate shares came after the company sold its Century Pulp & Paper business to ITC for Rs 3,498 crore on a slump sale basis. 

 

In an exchange filing, Aditya Birla Real Estate said, “This is to inform you in accordance with Regulation 30 of LODR Regulations and pursuant to the approval of the Board of Directors of the Company at their meeting held today i.e. Monday, March 31, 2025, the Company has executed a business transfer agreement with ITC Limited for the sale and transfer of the Company's Pulp and Paper undertaking operated under the name of 'Century Pulp and Paper', on a slump sale basis on such terms and conditions as detailed in the Business Transfer Agreement (including any amendments or modifications thereto) and all other agreements in connection therewith.”

 

Century Pulp and Paper encompasses the production, distribution, and sale of various paper products, including writing paper, printing paper, tissue paper, paperboard, rayon-grade pulp, and paper-grade pulp, along with other paper-based products.

 

The transaction, however, is subject to the completion of certain conditions outlined in the Business Transfer Agreement, including approval from shareholders and regulatory authorities.   ALSO READ | Stock Market LIVE Updates: Sensex tumbles 900 pts to 76,500; Nifty at 23,300

 

Aditya Birla Real Estate stated that the deal is expected to close within six months, pending the necessary approvals and condition fulfillment.

 

Following the announcement, domestic brokerage Antique Broking reportedly highlighted that the deal unlocks fresh capital for the company’s high-growth real estate business and maintained a ‘Buy’ rating with a target price of Rs 3,448. 

 

Meanwhile, foreign brokerage firm Nomura noted that the transaction will likely reduce the company’s consolidated net debt substantially, bringing it close to being net-debt-free, thus enhancing its potential for business development. Nomura also maintained a ‘Buy’ rating, with a target price of Rs 2,700.

 

About Aditya Birla Real Estate 

 

Aditya Birla Real Estate is a key player in the Indian real estate sector, part of the Aditya Birla Group, one of the largest conglomerates in India. The company was established with the vision of becoming one of the top real estate developers in the country.

 

Aditya Birla Real Estate has a strong presence in both the residential and commercial real estate segments, focusing on delivering high-quality projects that offer sustainable living and working spaces.   ALSO READ | Varun Beverages gain 2% after signing multiple share purchase agreements

 

Through its wholly-owned subsidiary, Birla Estates, the company has been active in the real estate market since 2016, with a fast-expanding footprint in major urban centres such as Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru, and Pune.

 

The company leverages its extensive legacy, financial strength, and expertise in construction and development to create premium residential and commercial properties. 

 

Aditya Birla Real Estate is headquartered in Mumbai, with regional offices in Mumbai, NCR, and Bengaluru.

 

At 10:31 AM, Aditya Birla Real Estate shares were trading 1.36 per cent higher at Rs 1,996.05 per share. In comparison, BSE Sensex was trading 1.22 per cent lower at 76,473.28 levels.