Finance
Aditya Birla Capital board approves merger of Aditya Birla Finance with itself
Aditya Birla Capital Ltd. announced, on Monday, that the board of directors have approved the amalgamation of Aditya Birla Finance Limited, its wholly owned subsidiary with Aditya Birla Capital Limited. However, the amalgamation is subject to regulatory and other approvals as may be required.
Aditya Birla Capital, a listed entity, operates as a systemically important non-deposit taking core investment company (NBFC-CIC). Within its structure, Aditya Birla Finance, a wholly owned subsidiary, functions as a systemically important non-deposit taking NBFC (NBFC-ICC).
The company, in a statement, said that 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, it further added.
“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,” said Kumar Mangalam Birla, Chairman Aditya Birla Group said.
The company also said that the proposed amalgamation will 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 which require mandatory listing of Aditya Birla Finance by September 30, 2025.
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Published: 11 Mar 2024, 05:38 PM IST