Aditya Birla Capital Shares Surge 8% as Advent to Buy 14% Stake in Housing Finance Arm for ₹2,750 Crore
Shares of Aditya Birla Capital Ltd (ABCL) jumped over 8 percent in early trade on Tuesday after global private equity major Advent International announced plans to invest ₹2,750 crore in the company’s wholly owned subsidiary, Aditya Birla Housing Finance Ltd (ABHFL).
The stock rose to an intraday high of ₹360.85, extending gains for the second consecutive session, as investors reacted positively to the strategic capital infusion.
Advent to Acquire 14.3% Stake in ABHFL
In an exchange filing, Aditya Birla Capital said its board has approved a proposal for a primary capital investment of ₹2,750 crore by Indriya Limited, an entity of Advent International L.P., into Aditya Birla Housing Finance.
Upon completion of the transaction, Advent International will hold a 14.286 percent stake in ABHFL on a fully diluted basis, while Aditya Birla Capital’s holding will reduce to approximately 85.7 percent.
The transaction values Aditya Birla Housing Finance at ₹19,250 crore. The investment is subject to approvals from the Competition Commission of India (CCI) and other regulatory authorities.
Strong Growth Metrics Support Valuation
Aditya Birla Housing Finance is among the fastest-growing housing finance companies in India and ranks among the top three players in incremental loan book growth.
According to the company:
- Assets Under Management (AUM) grew at a CAGR of 48% over the past three years
- AUM stood at ₹42,204 crore as of December 31, 2025
- Asset quality remains robust, with a gross stage-3 ratio of 0.54% and net stage-3 ratio of 0.23%
The company plans to deploy the fresh capital to sustain growth momentum, strengthen its balance sheet, and increase market share.
Management Commentary
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said the proposed investment would significantly enhance ABHFL’s ability to support India’s evolving housing finance ecosystem.
“India’s housing sector is at a defining inflection point, supported by policy initiatives such as Pradhan Mantri Awas Yojana and a strong push for affordable housing. Structured and accessible housing finance will be key to unlocking the next phase of growth,” he said.
Vishakha Mulye, MD & CEO of Aditya Birla Capital, highlighted the company’s expanding pan-India presence and digital focus.
“With this proposed capital raise, we enter the next phase of expansion for our housing finance business, with a clear focus on sustaining growth momentum and increasing market share,” she said.
Advent Sees Long-Term Opportunity in India’s Mortgage Market
Shweta Jalan, Managing Partner at Advent International, said the firm is optimistic about India’s housing finance sector.
“India’s mortgage market is benefiting from strong structural tailwinds and a constructive regulatory framework. Aditya Birla Housing has built a high-quality franchise with strong governance and risk practices,” she said.
Market Outlook
The announcement comes at a time when investor sentiment toward financial stocks remains upbeat, supported by expectations of steady credit growth and improving asset quality. Analysts view the deal as a positive strategic move that strengthens ABHFL’s capital base while bringing in a seasoned global investor.
(Except for the headline, this story has not been edited by Bharatiya News staff and is published from a syndicated feed.)
