The financial services company of Aditya Birla Group listed its shares of ABCL (Aditya Birla Capital Limited) today on the Indian stock exchanges BSE and NSE.
On the BSE, the stock debuted at Rs 261.20 but later during the day, it fell by 5 percent to hit a price of Rs 248.15, which was also its lowest intraday trading permissible limit.
On the National Stock Exchange, it listed at Rs 250 and here too it slipped by 5% from the opening price to hit a low of Rs 237.50.
Prior to the listing, the experts were expecting the shares to list somewhere in the price range of Rs 160 to 180. At the listing of Rs 180, the market cap of the company comes out to be Rs 40,000 crore. The shares, however, listed much above the expected price level on both the indices.
This listing of ABCL is the last phase of a composite scheme of arrangement where Aditya Birla Nuvo was merged with Grasim Industries. The financial services business was then demerged into Aditya Birla Capital.
According to the scheme of amalgamation, for every 10 shares held by investors of AB Nuvo, three shares of Grasim were issued. Then these investors in Grasim got seven shares of Aditya Birla Capital for each equity share of Grasim that they owned.
The swap ratio was worked out in such a manner that Aditya Birla Nuvo and Grasim investors have 25% stake in Aditya Birla Capital.
Aditya Birla Capital deals in three major businesses there. These are that of life insurance, NBFC (Non-Banking Financial Company) and the asset management.a