CCI approves acquisition of 4% stake in Aditya Birla Capital by Jomei Investments

Competition Commission of India (CCI) has approved acquisition of over 4 percent shareholding in Aditya Birla Capital (ABCL) by Jomei Investments. The proposed transaction entails Jomei Investments’ subscription of equity shares in ABCL amounting to approximately 4.15 percent of the total issued and paid up share capital of ABCL on a fully diluted basis. Jomei Investments is a special purpose vehicle owned by Advent International Corporation.

In September, ABCL has received approval from its board to raise primary equity capital of Rs 2,100 crore through a preferential allotment to certain marquee investors and the promoters. Out of the total capital to be raised, Rs 1,000 crore will be garnered through an investment by an entity affiliated with Advent International. Of the remaining Rs 1,100 crore, Rs 1,000 crore will be raised by promoter entities and Rs 100 crore by an entity affiliated with Premji Invest. The funds raised will be utilised to fund the future growth of ABCL’s businesses as well as to repay outstanding debt.

Aditya Birla Capital is one of the largest financial services players in India.