Aditya Birla Capital Limited (ABCL) has entered into a definitive Share Subscription Agreement (SSA) with PI Opportunities Fund – 1, an affiliate of Premji Invest, a leading Private Equity fund. As per the SSA, subject to the customary closing conditions, the Fund will subscribe to 2.2 per cent of the post scheme fully diluted equity share capital of ABCL.
The proposed transaction values ABCL at Rs 32,000 crore on a post money basis. This is in recognition of the quality and size of business created by ABCL, in just under a decade, and its consistent and solid performance, as a significant financial services conglomerate in the non bank space.
ABCL, formerly known as Aditya Birla Financial Services Ltd., is the holding company of the financial services businesses of the Aditya Birla Group.
ABCL had entered into a composite scheme of arrangement with Aditya Birla Nuvo Limited (ABNL) and Grasim Industries Limited (Grasim), basis which the financial services undertaking of Grasim will be transferred to and vested in the company by way of demerger effective from July 4, 2017, following which ABCL shall be listed after obtaining necessary approvals.
ABCL ranks amongst the top fund managers in India with an aggregate AUM (across asset management, private equity and insurance businesses) of Rs 2.46 lakh crore and a lending book of Rs 38.8 thousand crore as of March 31, 2017.
"We welcome a marquee investor like Premji Invest to join us in ABCL’s journey ahead. This transaction underpins the inherent strength of our financial services business," said Kumar Mangalam Birla, chairman, Aditya Birla Group.
Ajay Srinivasan, chief executive – Aditya Birla Capital, added, "It is indeed a pleasure to have an investor of the stature of Premji Invest recognise the value created by ABCL. We recognise and value the trust being placed on us and will keep our focus on creating value for all our shareholders."
"Premji Invest is excited to partner with ABCL, one of India’s leading non-bank financial services institutions. ABCL has built a high-quality customer franchise through a profitable and scalable business model, and achieved significant market leadership in certain segments. We believe this partnership will create significant value for all stakeholders," said a Premji Invest spokesperson.