Aditya Birla Capital makes a debut on BSE

Last fiscal year, aggregate revenue of Aditya Birla Capital stood at Rs 10,600 crore and profit-before Rs 1,150 crore.Company SummaryNSEBSEWiproLoading data…

PEER COMPANIES MUMBAI: Shares of Aditya Birla Capital, the holding company of the financial services businesses of the Aditya Birla Group, ended at Rs 248.15 a share, at a 5 per cent lower circuit after opening at Rs 261.20 on the BSE.

Its market capitalisation was Rs 54,615.58 crore after listing.

The listing is a culmination of a composite scheme of arrangement under which Aditya Birla Nuvo was merged with Grasim Industries and the financial services business was subsequently brought under Aditya Birla Capital.

Aditya Birla Capital houses the group’s housing finance, broking, corporate lending, structured finance, wealth management, private equity as well as the life and health insurance businesses.

“Grey market premium on Thursday suggested that the stock would list around Rs 210. Aditya Birla Capital has great businesses, so there was a lot of euphoria. In the pre-opening session, the price was discovered at about Rs 264 on the BSE. This price was not sustainable and since it is in trade-to-trade, it was locked in the lower circuit, “said Kush Katakia, CEO at Beanstalk Advisory.

Katakia said the stock is likely to remain in the lower circuit for the next two to three trading sessions.

In trade-to-trade segment, no intraday trading is allowed and the transactions placed in this segment have to be settled by taking or giving delivery of the shares.

Aditya Birla Capital, through its subsidiaries and joint ven tures, manages aggregate assets worth Rs 2.61 lakh crore and has a lending book of Rs 41,100 crore as of June 30, 2017.

For the financial year ended March, aggregate revenue of Aditya Birla Capital stood at Rs 10,600 crore and profit-before Rs 1,150 crore.

In July, PremjiInvest, the family investment arm of Wipro chairman Azim Premji, had picked up a 2.2 per cent stake in Aditya Birla Capital at Rs 145 per share, valuing the company at Rs 32,000 crore.

“The valuation of this stock can be easily two times priceto-book, which comes up to Rs 280-300. It deserves to be added in investors’ portfolios,” said Deven Choksey, managing director at KR Choksey Shares & Securities.

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