Aditya Birla Capital raises $420m to strengthen capital base

Aditya Birla Capital Limited said its board has approved a preferential equity issuance worth ₹4,000 crore ($420.0 million) to strengthen its capital base and support its next phase of growth.

The planned issue includes ₹2,880 crore ($302.4 million) to Grasim Industries Limited, ₹200 crore ($21.0 million) to Suryaja Investment Pte Limited, an Aditya Birla Group entity in Singapore, and ₹920 crore ($96.6 million) to the International Finance Corporation (IFC). The shares are to be issued at ₹356.02 ($3.74) each, subject to shareholder approval and other required clearances.

Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “Financial services have become central to India’s economic transformation, driving capital formation, expanding financial inclusion and supporting the formalisation of the economy at scale. As the sector evolves, institutions with diversified platforms, strong governance and technology-led execution are increasingly shaping the trajectory of growth. Over the last few years, ABCL has built scale across the financial-services landscape, creating a portfolio of high-quality businesses supported by robust digital capabilities and disciplined execution. Its breadth across segments, combined with a long-term approach to building institutional capability, positions the group well as India’s financial sector enters its next phase of expansion and sophistication.”

The company said the proceeds will be used to fund growth objectives, including capital augmentation, lending requirements and other general corporate purposes. It also plans to deploy part of the funds toward investments in subsidiaries, joint ventures and associates.

Aditya Birla Capital operates across lending, investments, insurance and payments. The company said its lending portfolio across NBFC and housing finance businesses rose at a 30% CAGR to more than ₹2 lakh crore ($24 billion), while combined assets under management in asset management and insurance increased at an 18% CAGR to about ₹5.9 lakh crore ($61.8 billion). It also reported continued growth in insurance premiums and consolidated profit over the period.