CCI approves 4% stake buy in Aditya Birla Capital by Jomei Investments

Fair trade regulator CCI on Thursday said it has approved acquisition of over 4 per cent shareholding in Aditya Birla Capital Ltd (ABCL) by Jomei Investments.

Jomei Investments is a special purpose vehicle owned by Advent International Corporation while ABCL is the holding company of the financial services businesses of the Aditya Birla Group.

"The proposed transaction entails Jomei Investments' subscription of equity shares in ABCL amounting to approximately 4.15 per cent of the total issued and paid up share capital of ABCL on a fully diluted basis," a combination notice filed with the regulator said.

In September, ABCL announced that it has received approval from its board to raise primary equity capital of Rs 2,100 crore through a preferential allotment to certain marquee investors and the promoters.

Out of the total capital to be raised, Rs 1,000 crore will be garnered through an investment by an entity affiliated with Advent International, it added.

Of the remaining Rs 1,100 crore, Rs 1,000 crore will be raised by promoter entities and Rs 100 crore by an entity affiliated with Premji Invest.

"The funds raised will be utilised to fund the future growth of the company's businesses as well as to repay outstanding debt," ABCL had said.

ABCL has presence across diverse businesses, including non-banking financial sector, asset management, life insurance, housing finance, health insurance, among others, a press release by Competition Commission of India (CCI) noted.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel