Aditya Birla Capital Pumps ₹300 Crore into Housing Finance Arm via Rights Issue
Aditya Birla Capital invests ₹300 crore in housing finance unit to boost growth and leverage ratio.
Aditya Birla CapitalHousing FinanceRights IssueInvestmentLeverage RatioReal Estate NewsAug 27, 2024
This strategic move aims to support ABHFL's growth and enhance its leverage ratio. As ABHFL is a wholly-owned subsidiary, the transaction, while classified as a related party transaction, has been conducted at arm’s length. ABCL remains both the holding company and promoter of ABHFL.
The equity shares were allocated to ABCL on August 27, 2024. This investment does not necessitate additional governmental or regulatory approvals, and ABCL’s ownership in ABHFL remains unchanged at 100%, preserving its complete control over the subsidiary.
About Aditya Birla Capital Ltd (ABCL) ABCL is the financial services arm of the Aditya Birla Group, one of India's largest conglomerates. The company offers a range of financial services, including housing finance, life insurance, and asset management.
About Aditya Birla Housing Finance Ltd (ABHFL) ABHFL is a leading housing finance company in India, providing home loans and other housing finance products to customers across the country.
Information The investment is a testament to ABCL's commitment to supporting the growth of its subsidiaries and enhancing their capabilities to serve customers better.
Aditya Birla Capital Ltd (ABCL) is a part of the Aditya Birla Group, a US$ 48.3 billion conglomerate with a presence in 36 countries. The group has a strong track record of creating long-term value for its stakeholders through sustainable business practices and innovation.
Frequently Asked Questions
What is the amount invested by Aditya Birla Capital in its housing finance unit?
₹300 crore
What is the purpose of the investment?
To support ABHFL's growth and enhance its leverage ratio
What is the ownership structure of ABHFL after the investment?
ABCL remains the 100% owner of ABHFL
Is the investment subject to any regulatory approvals?
No, the investment does not necessitate additional governmental or regulatory approvals
What is the date of allocation of equity shares to ABCL?
August 27, 2024
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