Aditya Birla Capital has informed stock exchanges about the completion of a significant equity allotment by its material subsidiary, Aditya Birla Housing Finance Limited (ABHFL), to Advent International. The transaction, completed on April 17, 2026, marks a strategic partnership that has altered the ownership structure of the housing finance subsidiary.

Equity Allotment Details

ABHFL's Board of Directors approved the allotment of 12,32,52,061 equity shares to Indriya Limited, one of the entities of Advent International, L.P. The shares were issued through a preferential issue on a private placement basis.

Ownership Structure Changes

The equity allotment has resulted in significant changes to ABHFL's ownership structure. ABHFL has ceased to be a wholly owned subsidiary of Aditya Birla Capital following this transaction.

All shareholding percentages are calculated on a fully diluted basis of ABHFL's paid-up equity share capital.

ABHFL's Financial Contribution

ABHFL represents a material subsidiary for Aditya Birla Capital, contributing significantly to the parent company's consolidated financials. Based on audited financial statements for FY 2024-25, ABHFL's financial metrics demonstrate its importance within the group.

About the Investor

Indriya Limited, the allottee, is one of the entities of Advent International L.P., described as one of the largest global investors in financial services, including in India. Advent International is a leading global private equity investor with significant global presence and substantial assets under management.

Key details about Advent International include:

• 16 offices across 5 continents
• More than USD 100 billion in assets under management
• Investments across 44 countries
• Focus on financial services sector globally

The company confirmed that the investor does not belong to the promoter, promoter group, or group companies, making this transaction an external strategic partnership. The preferential issue was executed pursuant to a Share Subscription Agreement entered into between ABHFL and the investor on February 3, 2026.

Aditya Birla Capital has received a maintained Overweight rating from Morgan Stanley, with the global investment bank setting a target price of ₹405 for the diversified financial services company. The rating reflects strong underlying business fundamentals despite some operational metrics falling slightly short of expectations.

Strong Housing Finance Performance

The company's housing finance segment emerged as a standout performer, delivering robust 48% year-on-year loan growth. This significant expansion in the housing finance portfolio demonstrates the company's ability to capitalize on India's growing residential financing demand and strengthen its market position in this key segment.

Financial Performance Highlights

The financial services company demonstrated strong Net Interest Income (NII) growth alongside healthy profit expansion. Morgan Stanley attributed this performance to effective operating leverage, indicating the company's ability to generate higher returns from its existing operational infrastructure and cost base.

Asset Quality Improvements

Aditya Birla Capital showed notable improvements in asset quality metrics, with lower non-performing assets (NPAs) contributing to overall financial health. The declining provisioning requirements provided additional support to earnings growth, reflecting better credit risk management and collection efficiency across the company's lending portfolios.

Mixed Operating Performance

While the overall trajectory remained positive, Morgan Stanley noted that some operating performance metrics came in slightly below analyst estimates. Despite this minor shortfall, the brokerage maintained its positive outlook based on the company's strong fundamentals and growth prospects in key business segments.

The maintained Overweight rating and ₹405 target price reflect Morgan Stanley's confidence in Aditya Birla Capital's strategic positioning within India's financial services sector, particularly given the robust housing finance growth and improving asset quality trends.