Preparations are on to change the structure of Aditya Birla Capital, a company providing financial services to the Aditya Birla Group.
This could be sold to Aditya Birla Insurance Brokers, the insurance brokerage arm of Kumar Mangalam Birla’s Aditya Birla Capital.
This information has been received from sources. Aditya Birla Capital is listed in the domestic market.
Its shares are trading at Rs 156 (Aditya Birla Capital Share Price) on BSE, down 0.67 percent.
Why plans to sell Aditya Birla Insurance Brokers
Aditya Birla Insurance Brokers is a 19 years old company, but its business is growing slowly.
In such a situation, Aditya Birla Capital is planning to sell it. It is one of the largest composite insurance companies in the country.
That is, it sells both life and non-life policies. However, in the financial year 2021-21, it got a revenue of only Rs 600 crore.
In such a situation, Vishakha Mulye, CEO of Aditya Birla Capital, decided to restructure it to increase the shareholders’ returns.
Its shares were listed five years ago in 2017 but could never cross the entry price.
However, since Price took over the company’s reins in June this year, its shares have gained 50 percent.
I am completing the deal this financial year
According to information received from sources, the company plans to sell it by March 31. However, a final decision has yet to be taken regarding its valuation.
Apart from this, something has yet to be decided regarding the sale, which means it can be avoided. Aditya Birla Group has refused to give any response in this matter.
According to the website of Aditya Birla Insurance Brokers, it provides broking and advisory services to companies and individuals.
Apart from this, it also offers re-insurance solutions. It has more than 350 personnel at 11 locations across the country.
