The Board of Directors of Aditya Birla Capital Limited (ABCL) has approved the amalgamation of Aditya Birla Stressed Asset AMC Private Limited (ABSAAMC) with Aditya Birla Financial Shared Services Limited (ABFSSL). Both entities are non-material, wholly-owned subsidiaries of ABCL. The amalgamation is subject to regulatory approvals and aims to streamline operations. The turnover of ABSAAMC and ABFSSL for the year ended March 31, 2025, was Rs. 3.60 Crore and Rs. 6.57 Crore, respectively.
Amalgamation of Aditya Birla Stressed Asset AMC and Aditya Birla Financial Shared Services
Aditya Birla Capital’s board has given the green light to a draft scheme of amalgamation involving two of its wholly-owned subsidiaries: Aditya Birla Stressed Asset AMC Private Limited (ABSAAMC) and Aditya Birla Financial Shared Services Limited (ABFSSL).
Details of the Amalgamating Companies
Both ABSAAMC and ABFSSL are described as non-material, wholly-owned subsidiaries of Aditya Birla Capital Limited. For the financial year ended March 31, 2025:
- Aditya Birla Stressed Asset AMC Private Limited (ABSAAMC): Reported a turnover of Rs. 3.60 Crore.
- Aditya Birla Financial Shared Services Limited (ABFSSL): Reported a turnover of Rs. 6.57 Crore.
Rationale for the Amalgamation
The company cites several reasons for the amalgamation, including:
- Simplifying the organizational structure by reducing the number of subsidiaries.
- Reducing legal and regulatory compliance burdens and administrative overhead.
- Enabling more efficient use of available resources.
Share Exchange Ratio
As part of the amalgamation, Aditya Birla Financial Shared Services Limited will issue shares to Aditya Birla Capital Limited, the shareholder of Aditya Birla Stressed Asset AMC Private Limited, based on the following share exchange ratio:
97 fully paid-up equity shares of Aditya Birla Financial Shared Services Limited for every 1,000 equity shares of Aditya Birla Stressed Asset AMC Private Limited.
Business Areas
Aditya Birla Stressed Asset AMC Private Limited is focused on raising and managing investment funds, acting as a fund manager, consultant, and advisor. Aditya Birla Financial Shared Services Limited provides shared services such as technology, application, and business process services to group companies.
Source: BSE