Aditya Birla Capital said on Monday that its board approved the merger of Aditya Birla Finance with the parent company to "create a large unified operating NBFC".
The merger is subject to regulatory and other required approvals, the company said. After the merger, Aditya Birla Capital will be a unified entity with "greater financial strength and flexibility enabling direct access to capital," it added.
"Our financial services business has scaled smartly to emerge as a core growth engine for the Aditya Birla Group. The proposed amalgamation will create a strong capital base for Aditya Birla Capital to grow its business and participate in India’s growth story, successfully fulfilling its commitment to empower the financial aspirations of millions of Indians,” Aditya Birla Group chairman Kumar Mangalam Birla said.
Aditya Birla Capital CEO Vishakha Mulye said the merger will help the company serve its customers better, achieve efficient utilisation of capital, enhance operational efficiencies, and hold the potential to create long-term value for stakeholders.
After the amalgamation, Aditya Birla Capital will be converted from a holding company to an operating NBFC.
The company cited rationalisation and simplification of group structure, improved financial stability, likely stakeholder value enhancement, and increased operational efficiency as the reasons for the merger.
Aditya Birla Capital oversees assets under management worth about Rs 4.1 lakh crore.
