Aditya Birla Capital Ltd (ABCL) plans to raise Rs 1,250 crore through a preferential issue to its promoter firms, Grasim Industries and Surya Kiran Investments Pte Ltd. This initiative is part of ABCL's larger goal of collecting Rs 3,000 crore from the market, as approved by the company's board on May 11.
According to a statement from ABCL, its board of directors has approved the preferential issuance of Rs 1,250 crore to its promoter and promoter group entity. The issuance will be priced at Rs 165.1 per equity share and is subject to shareholder approval. Grasim Industries will invest Rs 1,000 crore, while Surya Kiran Investments Pte Ltd will invest the remaining amount.
The funds raised will serve multiple purposes, including bolstering the capital base, improving the solvency margin, and leverage ratio of ABCL. Additionally, the funds will be used to support the company's growth requirements and make investments in subsidiaries, associates, or joint ventures involved in specific businesses and technology. ABCL also intends to enhance its IT infrastructure and digital platforms with the raised capital.
Approval from shareholders will be sought at an extraordinary general meeting scheduled for June 24. As of now, the promoters hold approximately 71.25 percent of ABCL's equity, with Grasim Industries accounting for 54.15 percent and Surya Kiran holding 0.93 percent.
As of March 31, 2023, ABCL managed aggregate assets under management worth about Rs 3.6 lakh crore. In the fiscal year ending March 31, 2023, the company reported consolidated revenue of Rs 29,999 crore and a profit after tax of Rs 2,057 crore. The fourth quarter of the same fiscal year saw a 35 percent increase in consolidated net profit to Rs 609 crore, compared to Rs 450 crore in the previous year. ABCL's total income rose to Rs 8,052 crore from Rs 6,620 crore year-on-year.
During the fourth quarter of 2022-23, ABCL's operating profit rose to Rs 832 crore from Rs 608 crore in the same period the previous year. The company's asset quality improved, with gross stage 2 and 3 assets declining 114 basis points sequentially and 314 basis points year-on-year to 5.84 percent as of March 31, 2023.