Aditya Birla Capital Ltd. announced on Friday the completion of stake sale of Aditya Birla Insurance Brokers Ltd. to Edme Services Pvt. Post this transaction, ABIBL ceases to be a subsidiary of the company with effect from Aug. 30.
The sale of approximately 25.7 lakh equity shares of Rs 10 each, representing 50% of the issued and paid-up share capital, was completed for Rs 252.2 crore, according to an exchange filing.
In March 2023, the board of directors approved the sale of its entire stake in ABIBL. Following this decision, a share purchase agreement was executed involving the financial services company, ABIBL, Infocyber India Pvt. — the other ABIBL shareholder with a 49.998% stake — and Edme Services.
Edme Services has become a 100% shareholder of ABIBL, which will be renamed as Edme Insurance Brokers Ltd., subject to regulatory approvals.
"This acquisition is a key milestone in our journey to become a dominant force in the financial services sector and contribute towards increasing insurance penetration in India through cluster-specific specialised products," said Sanjay Radhakrishnan, founding member of Edme.
Aditya Birla Capital's stock rose 1.01% during the day to Rs 223.36 apiece on the NSE. The stock closed 0.46% lower at Rs 220.11 per share, compared to a 0.33% advance in the benchmark Nifty. The share price has risen 21.47% in the last 12 months and 32.56% on a year-to-date basis.
RECOMMENDED FOR YOU
Aditya Birla Group Invests $20 Billion To Strengthen Position In Key Sectors
Nov 16, 2024
Aditya Birla Fashion Q2 Results: Net Loss Widens, Revenue Meets Estimates
Nov 07, 2024
Should Investors Take A Bite Of Swiggy IPO? Here's What Brokerages Suggest
Nov 06, 2024
International Copper Association Elects Hindalco Industries As Newest Member
Oct 24, 2024
POPULAR