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Aditya Birla Capital invests ₹300 crore in Aditya Birla Housing Finance to support growth and funding needs. Despite the investment, ABCL maintains 100% ownership. The transaction was conducted at arm's length, and ABHFL remains a wholly-owned subsidiary.
Aditya Birla Capital Ltd (ABCL) has announced a significant investment of ₹300 crore in its wholly-owned subsidiary, Aditya Birla Housing Finance Ltd (ABHFL), through a rights issue.
Additional Read: Aditya Birla Group
The investment aims to support ABHFL's growth initiatives and fulfil its funding requirements. Additionally, it is expected to improve ABHFL's leverage ratio, enhancing its financial position for future projects.
Despite the substantial investment, the percentage shareholding of ABCL in ABHFL remains unchanged at 100%. This reaffirms ABCL's commitment to maintaining full ownership of its subsidiary.
Additional Read: Aditya Birla Q4 Result
ABCL emphasises that the transaction was conducted at arm's length, ensuring fairness and transparency in the dealings between the two entities. This underscores the integrity of the investment process.
With this investment, Aditya Birla Capital demonstrates its confidence in the growth potential of Aditya Birla Housing Finance. The infusion of funds is expected to fortify ABHFL's position in the market and enable it to capitalise on emerging opportunities.
This move aligns with ABCL's strategic objectives of strengthening its presence in the financial services sector and maximising value for its stakeholders.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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