Aditya Birla Capital Ltd (ABCL), the financial services arm of Aditya Birla Group, on December 26 announced it is infusing Rs 850 crore into a wholly-owned subsidiary, Aditya Birla Finance Ltd (ABFL) on a rights basis.
The investment is being made through "subscription of equity shares of ABFL, on rights basis for aggregate cash consideration of Rs 849,99,99,456", the company said in a regulatory filing.
ABCL further announced that is also investing Rs 50 crore in its other wholly-owned subsidiary, Aditya Birla Capital Digital Ltd (ABCDL).
The investment in both the entities is aimed at "meeting their growth and
funding requirements", the exchange filing added.
Also Read: Aditya Birla Capital: Superior performance in Q2, outlook promising
The infusion of funds would not affect the shareholding of ABCL in both subsidiaries, which presently stands at 100 percent.
The announcement comes over a month after ABCL declared its quarterly results for the June-September period. The company's net profit came in at Rs 705 crore, marking a jump of 44 percent compared to Rs 488 crore reported in the same quarter last year.
The revenue from operations stood at Rs Rs 7,721 crore in Q2FY24, accelerating by 13 percent as against Rs 6,830 crore reported in the year-ago period.
In the trading session on December 26, the shares of Aditya Birla Capital edged in the green. Parrying some of the initial gains, the scrip settled at Rs 159.90 at the National Stock Exhange (NSE), only around 0.1 percent higher as against the previous day's close.
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