"The strategic intent of this agreement is to position Aditya Birla Financial Services group as a broad-based and integrated player in the financial services business," Aditya Birla Group Chief Executive, Financial Services, Ajay Srinivasan said.
Aditya Birla Nuvo today entered into an agreement in this regard with Apollo Sindhoori Capital Investments Ltd (ASCIL), the company said in a filing to the Bombay Stock Exchange, adding that the move will further strengthen the position of the financial services group as a manufacturer and distributor of value added financial products.
"ASCIL offers us a well established platform with a capable team that will integrate well into our existing business and further strengthen our presence in the financial services space," the statement added.
The Aditya Birla group has presence across financial services verticals that include life insurance, fund management, distribution and wealth management, security-based lending, insurance broking and private equity.
"It is a win-win situation for our employees and customers who will now have access to a wide array of products and services from one of India's household brand names. We have chosen to retain 10 per cent stake as we believe the Aditya Birla Group will add substantial value to the company," ASCIL Director Suneeta Reddy said.
ASCIL has a strong distribution network of over 190 own and 570 franchisee branches, which will increase the reach and accessibility for the group's financial services products.
Aditya Birla Nuvo would make an open offer post receiving the necessary approvals.
The company said, the purchase of the equity shares would be concluded upon completion of the open offer, which is required to be made by Aditya Birla Nuvo to the shareholders of Apollo Sindhoori Capital in terms of SEBI Regulations.
Shares of Aditya Birla Nuvo were trading at Rs 1315, up 0.47 per cent, while the scrip of Apollo Sindhoori was trading at Rs 57.80, up 9.26 per cent on the BSE in afternoon trade.