Aditya Birla Capital Ltd. will raise Rs 2,100 crore by preferential allotment of shares as it looks to pare debt and fund its growth.
The board has approved equity capital worth Rs 2,100 crore, the financial services provider said in an exchange filing. The amount will be raised at Rs 100 per share—a 10.62 percent premium to its Wednesday's closing price of Rs 90.40, the company said.
That would imply a share count dilution of 9.5 percent, according to a recent Morgan Stanley report.
Aditya Birla Capital will raise Rs 1,000 crore from Jomei Investments Ltd., an affiliate of Advent International; an additional Rs 1,000 crore from the promoter, Grasim Industries Ltd.; and by promoter group entities in aggregate. The remaining Rs 100 crore will be raised from PI Opportunities Fund, an affiliate of Premji Invest, according to the filing.
Advent, after the allotment, will hold 4.15 percent stake in the company, Premji Invest will hold 4.11 percent stake and the promoter and promoter group will have about 70.54 percent shareholding in the company.
Aditya Birla Capital may raise an additional Rs 500 crore in 2020-21 and 2021-22 each, according to Morgan Stanley.
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