Aditya Birla Money Board Approves RPT Changes, Extends Share Redemption Terms

1 min read     Updated on 15 Dec 2025, 10:45 AM
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Shriram SScanX News Team
Overview

Aditya Birla Money's board meeting on December 15, 2025, resulted in approval of key financial structure changes including modifications to material related party transactions with holding company Aditya Birla Capital Limited and extension of preference share redemption period by one year with enhanced redemption price of ₹687.44 per share, representing a 7.58% increase from the previous rate.

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Aditya Birla Money 's board has approved significant changes to the company's financial arrangements and corporate governance structure during its meeting held on December 15, 2025. The decisions involve modifications to material related party transactions and adjustments to preference share redemption terms.

Related Party Transaction Modifications

The board has approved modifications to existing material related party transactions with the holding company, Aditya Birla Capital Limited. These changes relate to transactions that were previously approved by shareholders through a resolution passed at the Extra-Ordinary General Meeting held on December 16, 2021.

Parameter Details
Transaction Type Material Related Party Transactions
Counterparty Aditya Birla Capital Limited
Original Approval Date December 16, 2021
Approval Method Extra-Ordinary General Meeting

Preference Share Redemption Adjustments

The company has made significant changes to its preference share redemption structure for 16,00,000 4% Redeemable Non-Convertible Non-Cumulative Preference Shares (RNCNCPS) with a face value of ₹100 each, issued to Aditya Birla Capital Limited.

Parameter Original Terms Revised Terms
Redemption Date December 23, 2025 December 23, 2026
Extension Period - 1 year
Redemption Price per Share ₹639.00 ₹687.44
Total Redemption Amount ₹102.24 crores ₹109.99 crores

The redemption price increase of ₹48.44 per share represents a 7.58% enhancement from the previous rate, subject to the consent of preference shareholders.

Corporate Governance and Financial Impact

These board decisions reflect the company's strategic approach to optimizing its financial structure while maintaining regulatory compliance. The modifications to related party transactions demonstrate adherence to corporate governance standards, while the preference share adjustments indicate proactive capital structure management.

The extended redemption period provides Aditya Birla Money with additional financial flexibility, while the increased redemption price offers enhanced value for preference shareholders. These changes require consent from preference shareholders and are part of the company's broader financial planning initiatives.

Historical Stock Returns for Aditya Birla Money

1 Day5 Days1 Month6 Months1 Year5 Years
+0.36%+1.06%-4.21%-17.41%-38.19%+239.70%
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Aditya Birla Money Secures Strong Credit Ratings from India Ratings

1 min read     Updated on 13 Nov 2025, 07:02 PM
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Reviewed by
Ashish TScanX News Team
Overview

India Ratings Research Private Limited has affirmed Aditya Birla Money Limited's Long Term Issuer Rating at 'IND AA+/Stable'. The agency also affirmed and assigned 'IND A1+' rating to the company's Commercial Paper facilities worth INR 23,500 million. These high ratings indicate the company's strong financial stability, low credit risk, and robust capacity for timely debt servicing.

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Aditya Birla Money Limited , a prominent player in the financial services sector, has received a robust affirmation of its credit ratings from India Ratings Research Private Limited. This development underscores the company's financial stability and creditworthiness in the market.

Key Rating Highlights

India Ratings has affirmed and assigned the following ratings to Aditya Birla Money Limited:

Instrument/Facility Size (INR million) Rating Action
Long Term Issuer Rating - IND AA+/Stable Affirmed
Commercial Paper 3,500.00 IND A1+ Assigned
Commercial Paper 20,000.00 IND A1+ Affirmed

Understanding the Ratings

The 'IND AA+' long-term issuer rating indicates a high degree of safety regarding timely servicing of financial obligations. This rating suggests that Aditya Birla Money Limited carries very low credit risk.

The 'IND A1+' rating for the company's commercial paper is the highest short-term rating assigned by India Ratings. This rating denotes the strongest capacity for timely payment of short-term financial commitments.

Implications for Investors and Stakeholders

These strong credit ratings are likely to have positive implications for Aditya Birla Money Limited:

  1. Enhanced Market Confidence: The affirmation of high ratings may boost investor confidence in the company's financial health.
  2. Favorable Borrowing Terms: High credit ratings often translate to more favorable terms for future borrowings.
  3. Competitive Edge: Strong ratings can provide a competitive advantage in the financial services sector.

Transparency and Compliance

In line with regulatory requirements, Aditya Birla Money Limited promptly disclosed this information to the stock exchanges. The company's commitment to transparency is evident in its timely communication of the rating action to its stakeholders.

As the financial landscape continues to evolve, these ratings serve as a testament to Aditya Birla Money Limited's strong financial position and its ability to meet its financial obligations effectively.

Historical Stock Returns for Aditya Birla Money

1 Day5 Days1 Month6 Months1 Year5 Years
+0.36%+1.06%-4.21%-17.41%-38.19%+239.70%
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