Aditya Birla Capital To Sell Entire Stake In Insurance Brokerage Unit
The entire stake sale will be executed at an enterprise value of Rs 455 crore, Aditya Birla Capital said in its statement.
Aditya Birla Capital Ltd. will offload its entire stake in subsidiary Aditya Birla Insurance Brokers Ltd.
The company's board approved the transfer of 25.65 lakh shares, representing 50.002% of the stake in Aditya Birla Insurance Brokers, to Edme Services Pvt. Ltd., a part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund, Aditya Birla Capital said in an exchange filing on Monday.
The board also cleared a share purchase agreement between Aditya Birla Capital, Aditya Birla Insurance Brokers, Infocyber India Pvt. Ltd., and Edme Services.
Infocyber India, the other shareholder of Aditya Birla Insurance Brokers, will sell another 25.64 lakh shares, or 49.998% of the company, to Edme Services.
The entire stake sale will be executed at an enterprise value of Rs 455 crore, Aditya Birla Capital said in its statement.
Aditya Birla Insurance Broker, as a non-material subsidiary, contributed Rs 684.52 crore to the consolidated revenue of Aditya Birla Capital and Rs 64.85 crore to its net worth in the fiscal ending March 2022. This marked 3.08% and 0.42% of the company's consolidated revenue and net worth, respectively, for the fiscal under consideration.
Aditya Birla Capital and Infocyber India may receive an additional consideration after five years from the closing of the stake sale, depending on certain conditions listed under the share purchase agreement, the company said.
The company will be entitled to receive 50.002% of any consideration, including the additional one, paid by Edme Services in lieu of 100% shareholding of Aditya Birla Insurance Brokers, Aditya Birla Capital said.
The Aditya Birla Capital stock closed 1.39% higher on Monday, as compared to a 0.22% rise in the benchmark Sensex.