Advent leads US$300m fundraise by Aditya Birla

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Aditya Birla Capital (ABCL), the financial services subsidiary of diversified conglomerate Aditya Birla Group, raised ₹21 billion (US$300 million) from a group of investors and other group companies.

Global private equity firm Advent International invested ₹10 billion, making it the lead investor in the transaction, while India-based fund Premji Invest brought shares worth ₹1 billion. Aditya Birla group company Grasim Industries put in ₹7.7 billion, and the rest of the shares, worth ₹2.3 billion, were picked up by other group companies such as Surya Kiran Investments, IGH Holdings and Pilani Investment and Industries Corporation.

Following the share issuance, Advent International will have a 4.15 % stake in ABCL, making it the largest non-promoter shareholder in the financial services company, and Premji Invest will hold a 4.11% stake in the company. The promoter shareholding will be 70.54 %.

Khaitan & Co was the adviser to Advent International. The core transaction team included partner Aakash Choubey, principal associates Abhishek Dadoo and Vidushi Gupta, senior associate Abir Sarkar, and associates Reshma Abraham and Tanvi Dabir.

AZB & Partners were the advisers to Premji Invest. The firm’s team included partners Srinath Dasari and Nanditha Gopal and associate Adoksh Shastry.

The preferential share issuance, announced on 5 September, was done at ₹100 apiece, a 10.6% premium to the previous day’s closing price. The proceeds will be used to fund the financial services company’s expansion plans.

ABCL is a diversified asset management company with a presence across financial services businesses including life and general insurance, mutual funds, real estate investments, portfolio management services and home financing.