Business Economy


Aditya Birla Capital invests Rs 484.50 crore in insurance arm

Mumbai, Jul 17 (UNI) Aditya Birla Capital Ltd (ABCL) officially informed the stock exchanges here on Friday that it has invested Rs 484.5 crore in Aditya Birla Sun Life Insurance Company Ltd (ABSLI) through a rights issue of equity shares.
“We wish to inform you that Aditya Birla Capital Limited (the company or ABCL) has made an investment of Rs 4,84,49,98,470/- (Rupees Four Hundred and Eighty-Four Crores Forty-Nine Lakhs Ninety-Eight Thousand Four Hundred and Seventy Rupees Only) on a rights basis, in the equity shares of Aditya Birla Sun Life Insurance Company Limited,” according to its stock exchange filing.
The investment was made on a rights basis for an aggregate cash consideration of Rs 4,84,49,98,470.
Following the investment, there is no change in Aditya Birla Capital Ltd shareholding percentage, and Aditya Birla Sun Life Insurance Company continues to remain a subsidiary of the company.
ABCL has made the investment to meet ABSLI's growth and funding requirements. The funds will also help improve ABSLI's solvency margin, the statement mentioned.
The investment was paid for in cash, according to the company statement.
Since Aditya Birla Sun Life Insurance Company is a subsidiary of Aditya Birla Capital, the investment is considered as a related party transaction, according to the statement.
ABCL said the transaction has been executed on an “arm’s length basis. The investment was made in the insurance sector, and no government or regulatory approvals were required for the transaction. Aditya Birla Capital's shareholding in Aditya Birla Sun Life Insurance Company continues to remain at 51% after the investment.
Aditya Birla Sun Life Insurance Company allotted the equity shares under the rights issue on July 17, 2026, according to the statement.
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