Aditya Birla Capital shares up by 4% on merger with Aditya Birla Finance

Published : 12 March 2024

A day after the board of directors of Aditya Birla Capital Limited authorized the merger of Aditya Birla Finance Ltd with itself on March 11, shares of Aditya Birla Capital rose about 4 percent at the opening on the NSE on March 12. The stock was trading at Rs 186.90 at 9:20 a.m. 

Aditya Birla Capital shares up by 4%

Aditya Birla Capital stated in a regulatory statement that the board has reviewed and authorized the combination of Aditya Birla Finance Limited, a fully-owned subsidiary of the business.

Aditya Birla Capital to merge with Aditya Birla Finance

Aditya Birla Capital to convert from Holding company to NBFC

Aditya Birla Capital will undergo a transformation from a holding company to an operational non-banking financing company (NBFC) following the merging. This would result in the creation of a single, sizable organization with increased financial strength and flexibility, allowing for direct access to capital. 

Following the merger, Rakesh Singh will serve as Executive Director and CEO (NBFC) of the combined firm, and Vishakha Mulye, currently, the CEO of ABCL, will take on the post of MD & CEO. This is again subject to any relevant regulatory or statutory approvals. 

Board details

With a target price of Rs 196 per share, Morgan Stanley has issued an equal-weight call for the shares. The stock has received a buy call from Jefferies, and the target price has been increased to Rs 225 per share. 

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