Aditya Birla Capital Share price and Fundamental Analysis

Company History

Aditya Birla Capital Limited (ABCL) (formerly known as Aditya Birla Financial Services Limited) (ABFSL) was incorporated on 15th October, 2007. The Company is a majority owned subsidiary of Grasim Industries Limited. The company and its subsidiaries have a significant presence spanning multiple sectors including non-banking financial company (NBFC), asset management, life insurance, health insurance, housing finance, private equity, general insurance broking, wealth management, broking, online personal finance management and pension fund management. The company has received a licence from the Reserve Bank of India (RBI) to set up an Asset Reconstruction Company.

The company is registered as a Non-Deposit taking Systemically Important - Core Investment Company (CIC-ND-SI) pursuant to the receipt of Certificate of Registration from the Reserve Bank of India (RBI) dated 16 October 2015, under Section 45-IA of the Reserve Bank of India Act, 1934 (RBI Act).

Aditya Birla Capital's wholly owned subsidiary Aditya Birla Finance Limited (ABFL) is among India's leading private diversified non-banking finance companies (NBFC) companies, offering end-to-end financing and wealth management solutions to a wide range of customers across the country. ABFL caters to varied financial requirements of a wide range of customers across retail, high-net-worth individual (HNI), ultra HNI, micro enterprises, small and medium enterprises, mid and large corporates.

Aditya Birla Capital's wholly owned subsidiary Aditya Birla Housing Finance Limited (ABHFL) is registered with the National Housing Bank as a housing finance company under the National Housing Bank (NHB) Act, 1987. ABHFL offers a comprehensive range of housing finance solutions, such as Home loans, Home Extension Loans, Plot & Home Construction Loans, Home Improvement Loans, Loans Against Property, Construction Financing, Commercial Property Purchase Loan and Property Advisory Services.

Aditya Birla Sun Life AMC Limited (ABSLAMC), the investment manager of Aditya Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Inc., Canada's leading international financial services organisation. Aditya Birla Capital holds 51% stake in ABSLAMC. ABSLAMC is India's third largest mutual fund, based on domestic average assets under management (AAUM) as published by AMFI for the quarter ended March 2018.

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a 51:49 joint venture between the Aditya Birla Group and Sun Life Financial Inc. ABSLI is one of India's leading private life insurance companies. Aditya Birla Health Insurance Co. Limited (ABHICL) is 51% and 49% joint venture between Aditya Birla Capital Limited (ABCL) and MMI Strategic Investments (Pty) Ltd. ABHICL is engaged in the business of health insurance.

Aditya Birla Capital's subsidiary Aditya Birla Insurance Brokers Limited (ABIBL) is a leading composite general insurance intermediary, licensed by the Insurance Regulatory and Development Authority of India (IRDA). The company specializes in providing general insurance broking and risk-management solutions for corporate and individuals. The company also offers reinsurance solutions to insurance companies; and has developed enduring relationships with Indian and global insurers operating in India and many other countries in South Asia, the Middle East and Southeast Asia.

Aditya Birla Capital's wholly owned subsidiary Aditya Birla PE Advisors Private Limited (ABPE) provides financial advisory and management services with focus on managing venture capital funds and alternate investment funds.

Aditya Birla Capital's subsidiary Aditya Birla Money Limited (ABML) is a broking and distribution player, offering equity and derivative trading through National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and Currency Derivative on MCX-SX. It is registered as a Depository Participant with both National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) and provides commodity trading on Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX) through its subsidiary.

Aditya Birla Capital's subsidiary Aditya Birla MyUniverse is India's first integrated online personal finance management platform. MyUniverse helps customers get a complete, LIVE picture of their finances by securely aggregating their online bank, credit card, mutual fund, stock, insurance and loan accounts.

Pursuant to the change in name of the company, RBI issued a Fresh Certificate of Registration dated 6 July 2017 in the name of Aditya Birla Capital Limited.

The Board of Directors of the company at its Meeting held on 11 August 2016 approved a Composite Scheme of Arrangement between (erstwhile) Aditya Birla Nuvo Limited (ABNL), Grasim Industries Limited (Grasim) and the company and their respective shareholders and creditors (the Composite Scheme). The National Company Law Tribunal, Bench at Ahmedabad sanctioned the Composite Scheme on 1 June 2017 and the certified true copy of the Scheme as received on 6 June 2017 was filed with the Registrar of Companies (ROC) on 4 July 2017, being the effective date. The Demerger Committee of the Company fixed 20 July 2017 as the record date for allotment of Equity Shares as per the Share Entitlement ratio pursuant to the Composite Scheme. Allotment of equity shares of the company to each eligible shareholder of Grasim Industries Limited, whose names were recorded in the register of Members of Grasim as on the record date i.e. 20 July 2017 was made on 14 August 2017, as per the Share Entitlement ratio pursuant to the Composite Scheme. The Equity Shares of the company were listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) (BSE and NSE and were admitted to trading with effect from 1 September 2017. The Global Depositary Shares (GDSs) issued pursuant to the Composite Scheme were listed on the official list of the Luxembourg Stock Exchange (LSE) and admitted to trading on the Euro MTF market of LSE with effect from 11 October 2017.

Aditya Birla Sun Life Insurance Company Limited became a subsidiary of Aditya Birla Capital with effect from 23 March 2017.

On 30 June 2017, the company issued and allotted 4.84 crores equity shares of Rs 10 each to PI Opportunities Fund I on a Private Placement basis.

The overall lending book for Aditya Birla Finance Limited (ABFL) grew year-on-year by 25% to Rs 43,242 crore as on 31 March 2018. The retail, SME and ultra HNI segments continued to grow faster and constituted 47% of the portfolio as on 31 March 2018 vs.43% in the previous year.

Aditya Birla Housing Finance Limited's (ABHFL) loan book doubled year-on-year from Rs 4,136 Crore in FY 17 to Rs 8,137 Crore in FY 18. The gross disbursement has doubled year-on-year from Rs 2,802 Crore to Rs 5,105 Crore in FY 18. ABHFL reported its first full profitable year in FY 18. The company forayed into the affordable housing segment in June 2017. ABHFL's footprint expanded to 51 branches with 2700+ channel partners as on March 2018.

Aditya Birla Sun Life AMC Limited (ABSLAMC) achieved the milestone of becoming India's third largest mutual fund with a quarterly AAUM of Rs 2,67,739 crore for the quarter ended March 2018.

During the year ended 31 March 2018, Aditya Birla Sun Life Insurance Company Limited (ABSLI) tied up with HDFC Bank with access to the bank's non-branch channel. HDFC has provided access to its pan-India branches with effect from 1 April 2018, leading to a significant business potential in the coming years.

Aditya Birla Health Insurance (ABHI) completed its first full year of operations in FY 18. In FY 18, ABHI created and activated capacities in all channels, which include 15,700+ agents across 59 branches, 5 bancassurance partnerships, 190+ brokers and the launch of direct tele-assisted and online channels. It has empanelled 4,200+ hospitals to enable cashless services across 540 cities.

During FY'19, Company and its subsidiary, Aditya Birla ARC Ltd., entered into a strategic joint venture with Varde Partners to pursue investments in stressed and distressed assets in India. Aditya Birla Money Ltd. (ABML), subsidiary of the Company and Aditya Birla Commodities Broking Ltd. (ABCBL), a step-down subsidiary of the Company (wholly owned subsidiary of ABML) had filed applications before the Hon'ble NCLT, for approval of a Scheme of Amalgamation for Merger of ABCBL with ABML, which was sanctioned and made effective by the Hon'ble NCLT vide its Order dated 14th December, 2018.

The Board of Directors at its Meeting held on 5th September, 2019 approved the issuance of 21 Crore equity shares at Rs. 100 each (face value of Rs 10 each at a premium of Rs 90 each) of the Company on a preferential basis to Grasim Industries Limited (the Promoter), Surya Kiran Investments Pte. Limited; and / or IGH Holdings Private Limited; and / or Pilani Investment and Industries Corporation Limited; Jomei Investments Limited and PI Opportunities Fund-I , subject to approval of shareholders .

As on 31st March, 2019, the Company had 20 Indian Subsidiaries and 7 Foreign Subsidiaries (including step down Subsidiaries).

As on 31st March, 2019, Aditya Birla Sun Life Insurance Company Ltd. and Aditya Birla Finance Ltd. were the material subsidiaries of the Company. In addition, Aditya Birla Sun Life AMC Ltd. and Aditya Birla Housing Finance Ltd. have also become material subsidiaries of the Company w.e.f. 1st April, 2019.

The Hon'ble National Company Law Tribunal, Bench at Ahmedabad, vide its order dated 13th December, 2019, sanctioned the Scheme of Arrangement for transfer of Transaction business of Aditya Birla MyUniverse Limited to Aditya Birla Finance Limited, wholly-owned subsidiaries of the Company, under Sections 230 - 232 of the Companies Act, 2013. The name of Aditya Birla MyUniverse Limited, was changed to Aditya Birla Capital Technology Services Limited (with effect from 3rd March, 2020) and it continues to offer and operate its IT & ITES Business. Global Clean Energy Fund SPC, was deregistered with effect from 31st March, 2020. Hence, it ceased to be a foreign subsidiary of the Company.

During the financial year 2019-20, Aditya Birla Sun Life Insurance Company Limited, Aditya Birla Finance Limited, Aditya Birla Sun Life AMC Limited and Aditya Birla Housing Finance Ltd were the material subsidiaries of the Company.

As on 31st March, 2020, the Company had 20 Indian Subsidiaries and 6 Foreign Subsidiaries (including step down Subsidiaries).

As on 31st March 2021, the Company had 19 Indian Subsidiaries and 6 Foreign Subsidiaries (including step down Subsidiaries).

Aditya Birla Capital Investments Private Limited, a non material subsidiary of the Company, was voluntarily struck off from the Registrar of Companies being non-operational and inoperative, with effect from 25th February 2021 and hence ceased to be a subsidiary of Company.

Aditya Birla Sun Life AMC Limited (ABSLAMC), a material subsidiary of the Company, filed a draft red herring prospectus (DRHP) dated 19th April 2021 with the Securities and Exchange Board of India for an initial public offering by way of an offer for sale (IPO) of up to 3,88,80,000 equity shares of face value of Rs. 5 each constituting up to 13.50% of the paid-up share capital of ABSLAMC, subject to relevant approvals as required and other considerations.

New Horizon Fund SPC (a Foreign Subsidiary of ABSLAMC), ceased to be a step down Subsidiary of the Company with effect from 30th September 2021.

As on 31st March 2022, the Company had 19 Indian Subsidiaries and 5 Foreign Subsidiaries (including step down Subsidiaries).

ABCAP Trustee Company Private Limited (ABCAP) a wholly owned subsidiary of the Company ceased to be a Subsidiary of the Company effective on 21st January, 2023. Aditya Birla Capital Digital Limited ('ABCDL') was incorporated as a wholly owned subsidiary of the Company with effect from 23rd March 2023.

In FY2023, Aditya Birla Health Insurance Co. Limited (ABHI) completed a preferential allotment of equity shares to Platinum Jasmine A 2018 Trust, acting through its trustee, Platinum Owl C 2018 RSC Limited, being a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) for an aggregate consideration of Rs 664.27 Crore and hence, ABHI ceased to be a Subsidiary of the Company and became an Associate of the Company w.e.f. 21st October 2022.

During the financial year 2022-23, Aditya Birla Sun Life Insurance Company Limited, Aditya Birla Finance Limited, Aditya Birla Sun Life AMC Limited and Aditya Birla Housing Finance Limited were the Material Subsidiaries of the Company.

In FY23, the Company expanded its pan-India network of empanelled distributors to 72,000+ KYD- compliant MFDs, 270+ National Distributors and 80+ banks and financial intermediaries.

During the year 2023, Company raised Rs 734 Crore in India Equity Services Fund (CAT III AIF) and received SEBI clearance for three funds, namely ABSL India Special Opportunities Fund, ABSL India Equity Innovation Fund, ABSL Structured Opportunities Fund. It completed thefirst close of Aditya Birla Real Estate Credit Opportunities Fund (Category II AIF) and also deployed the first investment.