Aditya Birla Capital to sell its entire stake held in ABIBL to Edme Services

The proposed deal includes the sale of the entire 25,65,103 equity shares of Rs 10 each held by the company.

Selling an entire stake in Insurance Brokerage Unit 

Aditya Birla Capital has received approval from the Board to sell its entire stake in Aditya Birla Insurance Brokers (ABIBL) to Edme Services for an undisclosed amount. The proposed deal includes the sale of the entire 25,65,103 equity shares of Rs 10 each held by the company (along with its nominees), representing 50.002 per cent of the issued and paid-up share capital of ABIBL to Edme Services.

The purchaser is part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund. The proposed transaction is subject to receipt of the approval of the Insurance Regulatory and Development Authority of India (Irdai). The proposed transaction is expected to be completed within 120 to 180 days from the execution of the share purchase agreement (SPA).

Aditya Birla Capital continuously evaluates strategic opportunities for its businesses with the long-term objective of creating stakeholder value. In line with this, the Board of Directors of the Company at its meeting held on March 27, 2023, has approved the sale of its entire stake in Aditya Birla Insurance Brokers (a non-material subsidiary of the Company) subject to requisite approvals.

Stock price movement

At 11 am, the shares of Aditya Birla Capital were trading at Rs 147.10, up by 1.15 points or 0.79% from its previous closing of Rs 145.95 on the BSE. The stock opened at Rs 146.85 and has touched a high and low of Rs 149.15 and Rs 144.30 respectively. The BSE group 'A' stock of face value of Rs 10 has touched a 52-week high and low of Rs 162.50 and Rs 85.70, respectively. Last one week high and low of the scrip stood at Rs 157.35 and Rs 139.35 respectively. The current market cap of the company is Rs 35798.40 crore.

The promoters holding in the company stood at 71.05 % while Institutions and Non-Institutions held 15.28 % and 12.81 % respectively.

Company Profile  

Aditya Birla Capital Ltd, the holding company for the financial services businesses of the Aditya Birla Group, is a universal financial solutions group catering to the diverse financial needs of its customers across their life stages.