The shares of this financial services provider gained up to 2 percent after the company announced the investment of Rs 899 crore in their wholly-owned subsidiary.
With a market capitalization of Rs 42,138.92 crore, the shares of Aditya Birla Capital Ltd were trading at Rs 162.10 per share, increased around 1.38 percent as compared to the previous closing price of Rs 159.90 apiece.
According to the company filing, Aditya Birla Capital Ltd has made investments on a rights basis, in the equity shares of Aditya Birla Finance Limited (“ABFL”) – Rs. 849 crore and Aditya Birla Capital Digital Limited (“ABCDL”) – Rs. 50 crore, a wholly-owned subsidiaries of the company.
Furthermore, the goal of this investment in ABFL is to satisfy its growth and financial requirements, as well as to strengthen its leverage ratio. As a result of this investment, ABCL’s percentage shareholding remains unchanged, and both ABCDL and ABFL remain wholly owned subsidiaries of the Company.
Looking into the company’s financial, Aditya Birla Capital Ltd’s revenue increased by 13 percent from Rs 6,825 Crore in Q2FY23 to 7,721 Crore in Q2FY24. During the same period, net profits increased by 51 percent from Rs 479 crore to Rs 725 crore.
As of September 30, 2023, the firm has 131 branches, covering 82% of the Total Addressable Market (TAM) with Sourcing led by a micro market penetration strategy, and the company has a deeper involvement with the ABG ecosystem.
Aditya Birla Capital Ltd serves clients in over 19,000 pan-India Pincodes through 76,300 mutual fund distributors. The business also has over 100 digital partners and 85 developing market locations.
As of March 31, 2023, the company had expanded its geographic presence and deepened its penetration into Tier 3 and Tier 4 markets, as well as new customer segments, and added approximately 247 branches, giving it a total of 1,295 branches.
Aditya Birla Capital Limited is a universal financial solutions firm that caters to its customers different financial demands throughout their life phases.
Written by:- Abhishek Singh
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