Aditya Birla Capital Merges Aditya Birla Finance to Form a Larger NBFC

On March 31, 2025, Aditya Birla Capital Limited (ABCL) completed the merger of its wholly owned subsidiary, Aditya Birla Finance Limited (ABFL), into itself. This follows the approval of the National Company Law Tribunal (NCLT), Ahmedabad, on March 24, 2025. The merger officially takes effect on April 1, 2025, with the appointed date set as April 1, 2024.

Approval Process and Leadership Appointments

The boards of ABCL and ABFL first approved the merger on March 11, 2024. It has since received approvals from shareholders, creditors, regulatory bodies, and authorities such as SEBI, RBI, and the Stock Exchanges.

As part of the transition, the board has appointed:

• Ms. Vishakha Mulye as Managing Director & CEO 
• Mr. Rakesh Singh as Executive Director & CEO (NBFC) 

These appointments are subject to regulatory approvals. Additionally, Mr Nagesh Pinge and Mr Sunil Srivastav will join as Independent Directors.

Commenting on the merger, Mr Kumar Mangalam Birla, Chairman of Aditya Birla Group, stated that India’s financial sector is growing rapidly, and Aditya Birla Capital has played an important role in this expansion. The merger will help the company offer a wider range of financial products and contribute to economic growth.

Benefits of the Merger

1. Simplified Corporate Structure: The merger reduces the number of legal entities within the group, making operations more streamlined. 
2. Stronger Financial Position: ABCL will transform from a Core Investment Company into an operating NBFC, giving it direct access to capital. 
3. Enhanced Stakeholder Value: The merger will lead to operational synergies, enabling sustainable growth and benefiting investors. 
4. Greater Efficiency: A unified structure will improve decision-making and reduce regulatory compliance burdens.

Business Performance

As of December 31, 2024, ABCL manages:

• Assets under management: ₹5.03 lakh crore 
• Lending book: ₹1.46 lakh crore 
• Gross written premium (Life & Health Insurance): ₹16,942 crore (9M FY25) 
• Consolidated revenue: ₹28,376 crore (9M FY25) 
• Profit after tax: ₹2,468 crore (9M FY25) 

ABCL operates 1,482 branches across India and has a network of over 200,000 agents and channel partners.

About Aditya Birla Capital Limited

ABCL is a leading non-deposit-taking NBFC and the financial services arm of the Aditya Birla Group. Through its subsidiaries and joint ventures, it offers services in loans, investments, insurance, and payments. The company is part of the US$66 billion Aditya Birla Group, which has a global presence and a workforce of over 187,000 employees across 100 nationalities.

As of April 1, 2025, at 11:29 AM IST, Aditya Birla Capital share price (NSE: ABCAPITAL) is trading at ₹181.54, down 1.91% (-₹3.53) for the day. The stock opened at ₹183.07, reached a high of ₹185.82, and hit a low of ₹181.00. Over the past 52 weeks, the stock has touched a high of ₹246.90 and a low of ₹149.01.

Conclusion

The merger marks a significant milestone for Aditya Birla Capital, strengthening its position in India’s financial sector. With a unified structure, the company aims to drive long-term growth, improve operational efficiency, and expand its financial offerings, benefiting customers and investors alike.

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