AV Birla Group’s financial services arm Aditya Birla Capital’s shares which made their debut on Friday by listing at Rs 250 without an IPO; fell by 5% to hit the lower circuit of Rs 226.25 on NSE.
AV Birla Group’s financial services arm Aditya Birla Capital’s shares which made its debut on the exchanges on Friday by listing at Rs 250 without an IPO; fell by 5% to hit the lower circuit of Rs 226.25 on NSE this morning.
The listing of Aditya Birla Capital has helped the Aditya Birla Group enter the top valuation league with a market cap of over USD 50 billion. At the end of Friday’s trade, the combined market valuation of the listed companies under Aditya Birla Group stood at Rs 3,42,354.87 crore (USD 53.5 billion).
“We are ready to take the next big step in our journey as we list Aditya Birla Capital. All our financial services businesses are coming under one brand– Aditya Birla Capital. A single brand that people of India can trust and relate to for all their money needs,” Ajay Srinivasan, CEO of Aditya Birla Capital said on Friday.
Aditya Birla Group said in a statement last week that the IPO-less listing for its financial services business unit is the culmination of the composite scheme of arrangement, under which Aditya Birla Nuvo was merged with Grasim Industries, while its financial services business was spun off into a new company called Aditya Birla Capital. The newly-formed Aditya Birla Capital is now the holding company of the financial services businesses of the Aditya Birla Group.
The listing of ABFS is part of a restructuring the $41 billion conglomerate started earlier this year. Birla decided to merge Aditya Birla Nuvo with Grasim, both of which served as holding companies for the group’s various businesses. Simultaneously, the group decided to spin off Nuvo-owned financial services business as a separate listed entity in an effort to unlock value.
Aditya Birla Capital Ltd has business interest in life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance.