PremjiInvest, the family investment arm of Wipro Ltd chairman Azim Premji, has agreed to buy a 2.2% stake in Aditya Birla Capital Ltd for Rs 703.7 crore ($109 million).
The proposed transaction values Aditya Birla Capital around Rs 32,000 crore, it said in a statement.
“This transaction underpins the inherent strength of our financial services business,” said Kumar Mangalam Birla, chairman of Aditya Birla Group.
Aditya Birla Capital was earlier known as Aditya Birla Financial Services Ltd and is the holding company for the diversified group’s financial services business.
The company had earlier entered into an agreement with sister companies Grasim Industries Ltd and Aditya Birla Nuvo Ltd. This involved Grasim merging Aditya Birla Nuvo with itself and transferring its financial services business to Aditya Birla Capital. After the business transfer, the financial services company will be listed on stock exchanges.
Aditya Birla Capital will hold the group’s life and health insurance, asset management, private equity, corporate lending, structured finance, broking, wealth management and housing finance businesses.
The company had assets under management of Rs 2.46 trillion as of 31 March 2017 and has a lending book of Rs 38,800 crore. It posted a net profit of Rs 619 crore on total revenue of Rs 5,886 crore for the year through March 2017.