Aditya Birla Capital Limited has invested ₹484.50 crore in its subsidiary, Aditya Birla Sun Life Insurance Company Limited (ABSLI), on a rights basis to meet growth and funding requirements and improve the insurer's solvency margin. The investment, made through a cash consideration, was completed on 17 July 2026. Following the allotment of equity shares under the rights issue, the percentage shareholding of Aditya Birla Capital in ABSLI continues to remain at 51%, with ABSLI retaining its status as a subsidiary.

The transaction was disclosed to the exchanges pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. As ABSLI is a subsidiary, the transaction is classified as a related party transaction where Aditya Birla Capital acts as the holding company and promoter. The company confirmed that the transaction was conducted at arm's length.

Investment Details

The rights issue allotment by Aditya Birla Sun Life Insurance Company Limited was finalised on 17 July 2026. The investment was structured as a subscription to equity shares on a rights basis for an aggregate cash consideration of ₹4,84,49,98,470.

Strategic Rationale

Aditya Birla Capital stated that the primary objective of the investment is to support the growth and funding requirements of Aditya Birla Sun Life Insurance Company Limited. Additionally, the capital infusion is aimed at improving the solvency margin of the insurance subsidiary. No specific governmental or regulatory approvals were required for this acquisition as it involved an existing subsidiary.

Aditya Birla Capital has allotted 55,680 unsecured, rated, listed, taxable, redeemable, subordinated Non-Convertible Debentures (NCDs) aggregating ₹556.80 crore on a private placement basis. The allotment was finalized on July 6, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. The issuance was conducted with a base issue size of ₹200 crore and a green shoe option up to ₹400 crore, which was fully utilized to reach the total allotted amount.

The NCDs carry a coupon rate of 8.0668% per annum and have a tenor of 3,653 days for the original issuance and 3,586 days for further issuance, maturing on April 30, 2036. Each debenture has a face value of ₹1,00,000. The securities are listed on both BSE Limited and the National Stock Exchange of India Limited. The debentures are unsecured, and no special rights or privileges are attached to the instruments.

Payment Schedule

The interest payments are structured annually, with the first coupon payment due on April 30, 2027. The final coupon payment, along with the principal repayment of ₹1,00,000 per debenture, is scheduled for April 30, 2036. The cash flows include an initial principal inflow and accrued interest component of ₹1,00,197.2566 per debenture on the date of allotment.

Financial Summary of Allotment