Aditya Birla Finance To Merge With Aditya Birla Capital
The new entity will be involved in these businesses — lending and non-lending financial services, and ancillary businesses.
Aditya Birla Finance Ltd. will be merging with Aditya Birla Capital Ltd.
ABCL's board approved on Monday the scheme of amalgamation of the wholly owned unit with the company, according to an exchange filing on Monday.
The merger is subject to the sanction of the National Company Law Tribunal and other necessary approvals from the Reserve Bank of India, the Securities and Exchange Board of India and other shareholders.
After the merger becomes effective, Vishakha Mulye will assume the role of managing director and chief executive officer, and Rakesh Singh will assume the office of executive director and CEO (NBFC) of the merged entity.
Through this move, the group plans to achieve:
A simplified group structure
Optimal and efficient utilisation of capital along with operational efficiencies
Consolidation of business, resulting in expansion and long-term growth
Once the merger goes through, the new, larger entity would be involved in these businesses — lending and non-lending financial services, and ancillary businesses, both directly and indirectly.
As of Dec. 31, Aditya Birla Finance has total assets under management worth Rs 1.04 lakh crore. Its net worth stood at Rs 14,649.9 crore and turnover at Rs 9,231.1 crore.
For ABCL, the total assets as of Dec. 31 stood at Rs 13,495.5 crore, net worth at Rs 13,306.9 crore and turnover at Rs 191.9 crore.
Aditya Birla Finance was classified as an NBFC-upper layer as per the scale-based regulations of the RBI. It catered financing and distribution of financial products to high net-worth individuals, micro, small and medium enterprises and even some corporate customers.