Aditya Birla Capital to raise Rs 2,100 crore from promoter, PE firms

US-based private equity firm Advent International will put in Rs 1,000 crore via its affiliate Jomei Investment Limited

Aditya Birla Capital on Thursday got board approval to raise Rs 2,100 crore from private equity firms — Advent International, Premji Invest — and from its promoter entities, which will be used to pay debt of the company. 

The money will be raised by preferential allotment of equity shares to the marquee investors. “The equity capital will be raised at Rs 100 per share, which is at a 10.62 per cent premium to the closing price of Aditya Birla Capital of Rs 90.40 as on September 4,” the company said. US-based private equity firm Advent International via its affiliate Jomei Investment will put in Rs 1,000 crore and India-based PE firm Premji Invest through its affiliate PI Opportunities Fund will invest Rs 100 crore.  

“Upon the completion of the issuance, Advent, through its affiliate, will hold 4.15 per cent of Aditya Birla Capital’s (ABCL) equity capital, while Premji Invest will have 4.11 per cent of ABCL’s equity capital,” the company said. 

Also, the promoter of ABCL, Grasim Industries will put in Rs 770 crore and other promoter entities will also put in Rs 230 crore in ABCL. After the transaction, the promoter and promoter group entities will hold 70.54 per cent in ABCL. 

ABCL has assets under management of over Rs 3 trillion and has a loan book of Rs 62,000 crore across its NBFC and HFC arms while its insurance arm has gross written premium of around Rs 8000 crore.