Aditya Birla Group would invest Rs 1,250 crore in its financial services segment.

The Aditya Birla Group plans to invest Rs 1,250 crore in its financial services division, Aditya Birla Capital Ltd. According to a statement on Thursday, the board of Aditya Birla Capital Ltd. (ABCL), which engages in lending, asset management, and insurance, approved a preferential issue of Rs. 1,250 crores to its promoter and promoter group company on Thursday.

ABCL recently declared its intention to raise Rs 3,000 crore, and its managing director Vishakha Mulye assured reporters that any business in need of finance will get capital to support its growth. According to ABCL, the preferential issuance would take place at a cost of Rs. 165.1 per equity share and is pending shareholder approval. On the BSE on Thursday, the company’s shares ended the day 0.91 percent higher at Rs 171.70 per share.

The statement claimed that the group’s largest company, Grasim Industries, will contribute Rs 1,000 crore as well as Rs 250 crore from Surya Kiran Investments, another group firm. The money obtained will go towards expanding the capital base, raising the solvency margin and leverage ratio, and satisfying the funding and expansion needs.

Additionally, they will be used in one or more of ABCL’s subsidiaries, associates, or joint ventures that are involved in certain companies and technologies, as well as in IT infrastructure and digital offering platforms, it was stated. The plan to raise up to Rs 3,000 crore in total will be discussed at an extraordinary general meeting of ABCL to be held on June 24.

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