Aditya Birla Finance Limited (ABFL) is a significant wholly owned subsidiary of Aditya Birla Capital Limited (ABCL). As a related party, ABFL’s acquisition involves an arm’s length transaction since ABCL serves as its holding company and promoter.
Operating in the Financial Services sector as an Upper Layer Non-Banking Financial Company (NBFC), ABCL is investing in ABFL to support its growth and funding needs while enhancing its leverage ratio. No governmental or regulatory approvals are required for this acquisition, which is expected to be completed with the allotment of equity shares on September 26, 2024, involving cash consideration.
The total cost of the acquisition is ₹499,99,99,926, and ABCL’s shareholding in ABFL remains at 100%. This investment reinforces ABCL’s control over ABFL, which has consistently operated in the financial services sector as a WOS for the past three years.