Aditya Birla Capital Invests ₹60 Crore in a Subsidiary for Growth

Aditya Birla Capital Limited (ABCL) has announced that it has invested ₹60 crore on a rights basis in its wholly-owned subsidiary, Aditya Birla Capital Digital Limited (ABCDL). The investment was made through the subscription of equity shares in ABCDL to support its growth and funding requirements.

This strategic move is aligned with ABCL’s long-term objective of expanding its digital capabilities and enhancing its service offerings through ABCDL. The investment ensures that ABCL continues to hold a 100% stake in ABCDL, as there has been no change in the percentage shareholding of the company following the capital infusion.

Aditya Birla Capital Digital Limited, being a wholly-owned subsidiary (WOS) of ABCL, is considered a related party. However, the transaction has been conducted on an arm’s length basis, ensuring that it adheres to the necessary regulatory and financial guidelines.

The equity shares of ABCDL were allotted on September 20, 2024, with the total cash consideration amounting to ₹60 crore. This capital infusion will further enable ABCDL to strengthen its operations, enhance digital infrastructure, and leverage technology to drive growth in the financial services space.

The rights basis investment indicates that ABCL, as the promoter and holding company, remains committed to the long-term success of ABCDL. This move reflects ABCL’s confidence in the growth potential of its digital arm, which plays a crucial role in the company’s overall strategy to stay competitive in the fast-evolving financial services industry.

By reinforcing the financial foundation of ABCDL, ABCL is well-positioned to capitalise on future market opportunities and cater to the increasing demand for digital financial services, thereby ensuring sustainable growth for both companies.

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