Aditya Birla Housing Finance Ltd raises ₹2,750 Crore from Advent International

Aditya Birla Capital Limited (NSE: ABCAPITAL, BSE: 540691) has announced a significant capital infusion into its housing finance arm. Aditya Birla Housing Finance Limited (ABHFL), a material subsidiary of the company, has successfully completed a preferential allotment of equity shares to Indriya Limited, an affiliate of global private equity giant Advent International.

The transaction marks a milestone for the group, as ABHFL transitions from being a wholly owned subsidiary to a strategically funded entity with a major global investor on board.

Transaction Highlights

Total Investment: ABHFL has received a consideration of approximately ₹2,750 Crore (₹2,749,99,99,850.30).

Shares Allotted: 12,32,52,061 equity shares were issued at a price of ₹223.12 per share (face value of ₹10).

New Shareholding Structure: * Advent International (via Indriya Limited): Now holds a 14.286% stake in ABHFL on a fully diluted basis.

Aditya Birla Capital Limited: Now holds 85.505% of the share capital.

Status Change: ABHFL has officially ceased to be a wholly owned subsidiary of Aditya Birla Capital Limited.

Strategic Rationale

The inclusion of Advent International as a minority partner brings significant global expertise to Aditya Birla Housing Finance. Advent is one of the world's largest private equity firms, managing over USD 100 billion in assets.

This capital infusion is expected to:

Fuel Growth: Provide a massive war chest for expanding the mortgage and housing finance portfolio.

Strengthen Balance Sheet: Enhance the net worth of ABHFL, which stood at ₹3,783.06 crore as of March 31, 2025.

Market Position: Solidify ABHFL's position in the competitive Indian housing finance market, where it already contributes roughly 12.45% to its parent company's consolidated net worth.

The allotment was carried out via a preferential issue on a private placement basis. The company confirmed that the investor does not belong to the promoter group, and the transaction is not a related party transaction. The deal was finalized following initial board disclosures made in February and earlier this month.

Shares of Aditya Birla Capital Limited was last trading in BSE at Rs. 340.20 as compared to the previous close of Rs. 338.20. The total number of shares traded during the day was 294814 in over 2836 trades.

The stock hit an intraday high of Rs. 341.35 and intraday low of 334.90. The net turnover during the day was Rs. 99370701.00.

Source : Equity Bulls

Keywords

AdityaBirlaCapital INE674K01013 AdityaBirlaHousingFinance FundRaising Indriya PreferentialIssue AdventInternational