Aditya Birla Capital Limited (ABCL) has invested ₹382.49 crore in the equity shares of its subsidiary, Aditya Birla Sun Life Insurance Company Limited (ABSLI), via a rights issue. The investment maintains ABCL’s 51% shareholding in ABSLI, ensuring it remains a subsidiary. The capital infusion aims to support ABSLI’s growth, meet funding needs, and improve its solvency margin.
Investment in Subsidiary
Aditya Birla Capital Limited (ABCL) has announced an investment of ₹382.49 crore (Rupees Three Hundred and Eighty-Two Crores Forty-Nine Lakhs Ninety-Nine Thousand Three Hundred and Eighty-Eight only) in Aditya Birla Sun Life Insurance Company Limited (ABSLI). This investment was made through a rights issue.
Rationale and Impact
The purpose of this investment is to meet the growth and funding requirements of ABSLI, as well as to enhance its solvency margin. Following the investment, ABCL’s percentage shareholding in ABSLI remains unchanged. ABSLI continues to be a subsidiary of ABCL, with ABCL holding 51% of the company’s shares.
Transaction Details
The investment was executed on a rights basis. The consideration was fully in cash. The transaction is considered to be an arm’s length transaction, despite ABSLI being a related party as a subsidiary of ABCL.
Source: BSE
