11 March 2024 – Aditya Birla Capital’s board has given the green light for the merger with its wholly-owned subsidiary, Aditya Birla Finance. The move, pending regulatory approvals, aims to streamline the group’s structure, creating a unified and robust operating NBFC with increased financial strength.
Aditya Birla Capital, led by Chairman Kumar Mangalam Birla, is a listed systemically important non-deposit-taking core investment company (NBFC-CIC). Aditya Birla Finance, a wholly-owned subsidiary, operates as a non-deposit taking systematically important NBFC (NBFC-ICC).
The proposed merger aligns with Aditya Birla Capital’s strategy to reduce legal entities and simplify its group structure. Upon completion, the company will transition from a holding entity to an operational NBFC, enhancing financial flexibility and enabling direct access to capital. The consolidation is expected to unlock operational synergies, fostering long-term sustainable growth and maximizing opportunities.
Upon the merger’s effectiveness, Vishakha Mulye is slated to become the Managing Director and CEO, with Rakesh Singh assuming the role of Executive Director and CEO (NBFC), subject to regulatory/statutory approvals.
Conclusion:
Aditya Birla Capital’s decision to merge with Aditya Birla Finance underscores its commitment to efficient capital utilization, operational excellence, and creating lasting value for stakeholders. The move aligns with regulatory requirements, positioning the company for continued growth and participation in India’s financial landscape.
