Aditya Birla Capital Ltd, which manages assets worth Rs 4.1 lakh crore, announced that its board of directors approved the merger of Aditya Birla Finance Ltd, its wholly-owned subsidiary, with the company. Aditya Birla Capital is a listed systemically important non-deposit taking core investment company (NBFC-CIC). Aditya Birla Finance, its wholly-owned subsidiary, is a non-deposit taking systematically important NBFC (NBFC-ICC). The group said the proposed amalgamation will result in reduction of legal entities and simplification of the group structure of Aditya Birla Capital. Post completion of the amalgamation, Aditya Birla Capital will get converted from a holding company to an operating NBFC. “This will create a unified large entity with a greater financial strength and flexibility enabling direct access to capital. This will also help the company to maximise its share of opportunities by efficient utilisation and allocation of capital,” the company said in an exchange filing. “The proposed amalgamation will lead to consolidation of the businesses and operational synergies and resulting in the expansion and long-term sustainable growth. This will enhance value for various stakeholders of the company,” it said. The amalgamation is expected to lead to seamless implementation of policy changes and reduction in the multiplicity of legal and regulatory compliances. “The proposed amalgamation will result in compliance with the Scale based Regulations of RBI (Reserve Bank of India) which require mandatory listing of Aditya Birla Finance by September 30, 2025,” it said. Kumar Mangalam Birla, Chairman Aditya Birla Group said, “The financial services sector is the bedrock of India’s growth story. Our financial services business has scaled smartly to emerge as a core growth engine for the Aditya Birla Group. The proposed amalgamation will create a strong capital base for Aditya Birla Capital to grow its business and participate in India’s growth story, successfully fulfilling its commitment to empower the financial aspirations of millions of Indians.” Once the scheme becomes effective, Vishakha Mulye will assume the role as managing director and chief executive officer (CEO) and Rakesh Singh will assume the role as Executive Director and CEO (NBFC) of the amalgamated company, subject to regulatory/statutory approvals. As of December 31, 2023, Aditya Birla Capital manages aggregate assets under management of about Rs 4.1 lakh crore with a total lending AUM of Rs 115,139 crore and gross written premium of Rs 13,500 crore in life and health insurance businesses. It reported consolidated revenue of Rs 26,791 crore and a profit after tax of Rs 2,090 crores for the nine months ended FY 2024. The company has a pan-India presence with 1,462 branches across all businesses as of December 31, 2023.
