The shares of the financial services provider gained up to 6 percent after the company’s Board of Directors approved the scheme of amalgamation of its subsidiary.
With a market capitalization of Rs 48,164.29 crore, the shares of Aditya Birla Capital Ltd were trading at Rs 185.00 per share, increasing around 3.03 percent as compared to the previous closing price of Rs 179.65 apiece.
According to the company filing, the Board of Directors of Aditya Birla Capital Ltd has approved the scheme of amalgamation of Aditya Birla Finance Ltd., a wholly-owned subsidiary. The proposed amalgamation will create a strong capital base for Aditya Birla Capital to grow its business.
Additionally, The proposed amalgamation will result in compliance with the Regulations of RBI which require a mandatory listing of Aditya Birla Finance by September 30, 2025.
Furthermore, The proposed merger will consolidate firms and create operational synergies, resulting in expansion and long-term growth. This will increase the value for the company’s stakeholders.
Looking into the company’s financial, Aditya Birla Capital Ltd’s revenue increased by 27 percent from Rs 6,938 Crore in Q3FY23 to 8,800 Crore in Q3FY24. During the same period, net profits decreased by 76 percent from Rs 3,285 crore to Rs 760 crore.
Aditya Birla has 131 branches, accounting for 82% of the Total Addressable Market (TAM). Sourcing is based on a micro market penetration strategy, and the company is more involved in the ABG ecosystem.
Aditya Birla Capital Ltd has 76,300 mutual fund distributors and services clients in over 19,000 pin codes in India. The company has approximately 100 digital partners and 85 expanding market areas.
The company has grown into Tier 3 and Tier 4 areas, as well as new consumer groups, adding around 247 branches for a total of 1,295 locations.
Aditya Birla Capital Limited provides financial services such as lending, both as a non-banking financial institution (NBFC) and as a housing financing institution, life and health insurance, asset management, general insurance, and stock broking, among others.
Written by:- Abhishek Singh
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