Aditya Birla Capital Limited Announced Sale Of Its Stake In Insurance Arm ABIBL

On Monday, March 28, 2023, late evening, Aditya Birla Capital Limited announced through an exchange filing, that it will sell of its entire stake in Aditya Birla Insurance Brokers Limited. The stake will be a part of Samara Capital Group, an affiliate of Samara Alternate Investment Fund (AIF). The details are given below.

As per the filing, "the Board of Directors of the Company at its meeting held today i.e. 27 March 2023, has approved the sale of its entire stake in Aditya Birla Insurance Brokers Limited ("ABIBL") (a non-material subsidiary of the Company) subject to requisite approvals."

The company intends to sell its entire stake representing 50.002% of 25,65,103 equity shares of Rs. 10 each of the issued and paid-up share capital of ABIBL to Edme Services Private Limited (purchaser), The Purchaser is part of the Samara Capital Group and an affiliate of Samara AIF.

The filing even mentioned the execution of sale process. "The execution of a share purchase agreement between the Company, ABIBL, Infocyber India Private Limited ("Infocyber", the other shareholder of ABIBL) and the Edme, for sale of entire 100% of the issued and paid-up share capital of ABIBL to Edme, including 25,64,897 equity shares of Rs. 10/- each held by Infocyber, representing the balance 49.998% of the issued and paid-up share capital of ABIBL for proposed transaction, at an enterprise value of Rs. 4,550 Million on a cash free and debt free basis, and subject to closing adjustments on the terms set out in the share purchase agreement.

Further, under the agreement, the company and Infocyber may receive an additional consideration after completion of 5 years from the closing which is conditional upon the fulfilment of certain conditions under the share purchase agreement. The company shall be entitled to receive 50.002% of any consideration paid by Edme in lieu of its acquisition of 100% of ABIBL's issued and paid-up share capital in accordance with the share purchase agreement."

The latest stock price of Aditya Birla Capital is trading at Rs 148.45 per share at the time of writing this copy, it is up by 0.72%. Its 52-week high is at Rs 162.50 per share and 52-week low is at Rs 85.70 per share. The current free flow market capitalisation of the company is Rs 10,314.92 crore.