Aditya Birla Finance Ltd. has formally announced its intention to merge with Aditya Birla Capital Ltd., resulting in the creation of a new entity engaged in the provision of lending and non-lending financial services, as well as ancillary businesses.
The decision to proceed with the merger has been officially approved by the board of ABCL and is now pending sanction from the National Company Law Tribunal, in addition to requisite approvals from the Reserve Bank of India, the Securities and Exchange Board of India, and other shareholders. Upon finalization of the merger, Vishakha Mulye will assume the role of managing director and chief executive officer, while Rakesh Singh will serve as the executive director and CEO (NBFC) of the combined entity.
The group’s primary objectives in pursuance of this merger include the attainment of a simplified group structure, optimal and efficient capital utilization, operational efficiencies, consolidation of business, and long-term growth. Post-merger, the new entity will be directly and indirectly involved in the provision of lending and non-lending financial services, as well as ancillary businesses.
As of the end of December, Aditya Birla Finance reported total assets under management amounting to Rs 1.04 lakh crore, with a net worth of Rs 14,649.9 crore and a turnover of Rs 9,231.1 crore. Conversely, ABCL recorded total assets of Rs 13,495.5 crore, net worth of Rs 13,306.9 crore, and a turnover of Rs 191.9 crore during the same period.
Designated as an NBFC-upper layer by the RBI, Aditya Birla Finance provided financing and distributed financial products to high net-worth individuals, micro, small, and medium enterprises, as well as corporate customers.
The imminent success of the merger hinges upon the acquisition of necessary regulatory approvals, rendering this a pivotal phase of anticipation and preparation for both entities as they transition into a new chapter of their business operations.
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