Aditya Birla Finance, the lending subsidiary of the steel to telecom group, will merge with its listed parent Aditya Birla Capital to comply with the Reserve Bank of India s (RBI) scale-based regulations for non-banking finance companies (NBFCs). The merger will result in Aditya Birla Finance s mandatory listing by September 30, 2025.
The rationale and benefits of the proposed amalgamation are rationalisation and simplification of group structure, improved financial stability, likely stakeholder value enhancement, increased operational efficiency, the group said.
Aditya Birla Capital Limited (ABCL) and Aditya Birla Finance (ABFL) have approved the Scheme of Amalgamation (Scheme) to create a large unified operating NBFC. The merger will result in a reduction of legal entities and simplification of the group structure of Aditya Birla Capital. It will also comply with the Scale based Regulations of RBI, which require mandatory listing of Aditya Birla Finance by September 30, 2025.
India s Aditya Birla Capital said on Monday it will merge its unit Aditya Birla Finance with the parent and turn into an operating non-banking financial company from an holding company..