The share price of Grasim Industries Ltd, a flagship company of the Aditya Birla Group, hit a fresh 52 week high today on the back of after market hours reports yesterday that Aditya Birla Capital, the financial services arm of the Aditya Birla Group, has sold a 2.2 per cent stake to PremjiInvest, the family investment arm of Wipro chairman Azim Premji, for around Rs 703 crore.
The shares opened at Rs 1,290.10 on the National Stock Exchange and hit an intraday high of Rs 1,294.10, up 0.83 per cent from its yesterday’s close of Rs 1,283.40. At 10:58 a.m., the stock was quoted at Rs 1277.70, down 0.44 per cent on the NSE.
Aditya Birla Capital has completed issuance and allotment of 4.84 crore share for Rs. 145.40 per share on a private placement basis to PI Opportunities Fund-I in accordance with the terms of the subscription agreement, Grasim Industries Ltd said in a regulatory filing to the stock exchanges.
PI Opportunities I is the part of PremjiInvest, the private investment office of IT major Wipro’s billionaire chairman Azim Premji. The deal values Aditya Birla Capital at around Rs 32,000 crore.
PremjiInvest is a private equity fund owned by Azim Premji which manages his $1 billion personal portfolio. The investment firm has built up positions and funded around 40 publicly listed and private companies out of the corpus of $1 billion. However, its operations are shrouded in secrecy and the firm has consciously avoided building a public profile.
Aditya Birla Capital had earlier entered into an agreement with sister companies Grasim Industries Ltd and Aditya Birla Nuvo Ltd. This involved Grasim merging Aditya Birla Nuvo with itself and transferring its financial services business to Aditya Birla Capital. Post the execution of this agreement, Aditya Birla Capital will hold the group’s life and health insurance, asset management, private equity, corporate lending, structured finance, broking, wealth management and housing finance businesses.