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.

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