Aditya Birla Capital invests ₹100 crore in arm Aditya Birla Capital Digital on rights basis

Aditya Birla Capital (ABCL) on Tuesday (November 19) said it has invested ₹100 crore in its wholly owned subsidiary, Aditya Birla Capital Digital Ltd (ABCDL), through a rights issue. The investment, completed on November 19, 2024, maintains ABCL’s 100% ownership in ABCDL.

“…we wish to inform you that, Aditya Birla Capital Limited (the Company or ABCL) has made an investment of ₹100 crore (Rupees Hundred Crore Only) on rights basis, in the equity shares of Aditya Birla Capital Digital Limited (ABCDL),” according to a stock exchange filing.

The funding is intended to support the growth and funding requirements of ABCDL, which focuses on digital initiatives within the group. ABCL confirmed that the transaction, being with a related party, was conducted at arm’s length.

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“Pursuant to the aforesaid investments, there is no change in the percentage shareholding of ABCL and ABCDL continues to be wholly owned subsidiary of the company,” it said.

Aditya Birla Capital reported consolidated profit after tax (PAT) of ₹1,001 crore, reflecting a 42% year-on-year increase and a 32% sequential rise. The profit figure includes a ₹167 crore gain from the sale of its 50% stake in Aditya Birla Insurance Brokers, the company said in a statement.

Consolidated revenue also grew by 36% year-on-year, reaching ₹12,007 crore. ABCL’s Non-Banking Financial Company (NBFC) segment achieved a 23% year-on-year growth in AUM, reaching ₹1.14 lakh crore, with disbursements climbing 17% year-on-year to ₹19,322 crore.

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The housing finance portfolio surged 51% year-on-year to ₹23,236 crore, while disbursements increased by 113% year-on-year. The quarterly average AUM in mutual funds stood at ₹3.83 lakh crore, marking a 23% year-on-year growth. Equity AUM grew by 39%, contributing 47.1% to the total portfolio.

Individual first-year premiums in life insurance rose by 33% in the first half of FY25 to ₹1,578 crore, while health insurance gross written premiums expanded by 39% year-on-year to ₹2,171 crore.

ABCL’s digital initiatives, including its Direct-to-Consumer (D2C) platform ABCD and the B2B platform Udyog Plus, show some traction. The ABCD platform, now with over 2.5 million customer acquisitions, offers digital products like payments, loans, and insurance.

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Shares of Aditya Birla Capital Ltd ended at ₹184.55, down by ₹0.45, or 0.24% on the BSE.