Premji Invest, Wipro Chairman Azim Premji’s investment arm, has picked up 2.2 per cent stake worth Rs 700-crore in Aditya Birla Capital (ABCL) at a valuation of Rs 32,000 crore ahead of its listing next month.

In a statement, the Aditya Birla group said PI Opportunities Fund – 1, an affiliate of Premji Invest, would subscribe to about 2.2 percent of the fully-diluted equity share capital in ABCL, formerly known as Aditya Birla Financial Services. ABCL is the holding company of the financial services businesses of the Aditya Birla Group.

ABCL had entered into a composite scheme of arrangement with Aditya Birla Nuvo and Grasim Industries, which have merged their operations into Grasim, while the financial services business of Grasim would be transferred to and vested in the company by way of demerger effective from July 4, 2017, into ABCL, which would be listed on the Indian stock exchanges.

In accordance with the scheme, on or prior to July 4, 2017, the company is permitted to issue additional equity shares, to one or more financial investors.
“We welcome a marquee investor like Premji Invest to join us in ABCL’s journey ahead. This transaction underpins the inherent strength of our financial services business,” Aditya Birla group chairman Kumar Mangalam Birla said.

ABCL ranks amongst the top fund managers in India with aggregate assets under management, across mutual fund, private equity and insurance businesses of Rs 2.46 lakh crore and a lending book of Rs 38,000 crore as of March 31, 2017.

“Premji Invest is excited to partner with ABCL, one of India’s leading non-bank financial services institutions. ABCL has built a high-quality customer franchise through a profitable and scalable business model, and achieved significant market leadership in certain segments. We believe this partnership will create significant value for all stakeholders,” a Premji Invest spokesperson said.

ABCL has recently applied to the Reserve Bank of India for seeking licence to start an asset reconstruction and securitisation business. Group company Idea Cellular, which is merging its operations with Vodafone, is also having a payment bank licence.