Aditya Birla Capital invests Rs 300 crore in Aditya Birla Housing Finance

30 May 2024 , 12:40 PM

Aditya Birla Capital Ltd (ABCL), a financial services company, has invested ₹300 Crore in its subsidiary, Aditya Birla Housing Finance Ltd (ABHFL), through a rights issue.

We would like to inform you that, Aditya Birla Capital Limited (the Company or ABCL) has invested  ₹300,00,00,000 (Rupees Three Hundred Crore Only) via a rights issue, in the equity shares of Aditya Birla Housing Finance Limited (ABHFL), the business stated in a filing with the stock exchange.

This investment intends to assist ABHFL’s growth and financial requirements while also improving its leverage ratio. Despite the significant investment, ABCL’s percentage stake in ABHFL remains at 100%.

Following the aforesaid investments, there is no change in the shareholding pattern of ABCL and ABHFL. Both the companies continue to be wholly-owned subsidiaries of the company, said the company in its filing with the bourses.

ABHFL, being a wholly-owned subsidiary, is a related party, and this transaction was performed at arm’s length. The equity shares were allotted to ABCL on May 29, 2024, Aditya Birla Capital added.

Following this development, Aditya Birla Capital slipped to an intraday low of ₹222.35 on NSE.

At around 12.32 PM, Aditya Birla Capital was trading 1.13% lower at ₹223.30, against the previous close of ₹225.85 on NSE.

ABHFL is a non-deposit accepting housing finance firm registered with the National Housing Board (NHB) that commenced operations in October 2014. As of December 31, 2023, ABHFL had assets under management worth about ₹16,538 Crore. ABHFL’s network has grown to 130 branches as of December 31, 2023.

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