Aditya Birla Capital stock jumps 3% on ₹1,250 cr fund infusion by promoter

Shares of Aditya Birla Capital, the financial arm of Aditya Birla Group, rose over 3% in early trade on Friday after its parent company proposed to inject ₹1,250 crore in the company. The board of the company on Thursday approved a preferential issuance of ₹1,250 crore to its promoter and promoter group entity, Aditya Birla Capital (ABCL) said in a regulatory filing. The promoter groups own a 71.02% stake in the company, while the rest is held by public shareholders.

Boosted by the fundraising plan, Aditya Birla Capital shares opened at ₹174.65, up 1.7% against the previous closing price of ₹171.70 on the BSE. In the first hour of trade so far, the largecap stock gained as much as 2.8% to hit a 52-week high of ₹176.55, while the market capitalisation climbed to ₹42,112 crore.

Last month, the board of the company had approved raising ₹3,000 crore in funding through equity and debt routes in one or more tranches. 

“The board of directors of Aditya Birla Capital, at its meeting held on Thursday, approved, subject to the requisite statutory and regulatory approvals, including approval of the shareholders of the company, issuance of fully paid-up equity shares of face value of ₹10 each for an aggregate consideration not exceeding ₹1,250 crore on a preferential basis,” ABCL said in a BSE filing on Thursday.

As per the exchange filing, the company will issue 6,05,69,351 equity shares, at a price of ₹165.10 apiece, including a premium of ₹155.10 per share, for an aggregate consideration not exceeding ₹1,000 crore to Grasim industries, the promoter of the company.

Besides, the financial services firm will issue 1,51,42,337 equity shares, at a price of ₹165.10  per share, including a premium of ₹155.10, for an aggregate consideration not exceeding ₹250 crore to Surya Kiran Investments Pte Limited, member of the promoter group of the company.

The company also informed exchanges that the board has also approved to convene an extra-ordinary general meeting of the shareholders of the company on June 24, 2023, for seeking approval of its shareholders for preferential issue to the proposed allottees as mentioned above.

The company will also seek shareholders approval for raising of funds through issuance of securities for an aggregate amount not exceeding ₹1,750 crore in one or more tranches, subject to requisite regulatory approvals.

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