Private equity firm Advent is in advanced talks to invest Rs 1,200-1,300 crore in Aditya Birla Capital for a 6-7 percent stake, a report in The Economic Times has said.
The deal, if it goes through, will make Advent ABCL’s largest non-promoter shareholder.
ABCL will likely approve Advent’s proposal in a board meeting on September 5. The fundraising will be done through a preferential allotment or a qualified institutional placement, the report said.
Moneycontrol could not independently verify the news.
The company’s stock, which began trading in September 2018, closed at Rs 87.55 on September 3, bringing the market value to Rs 19, 309 crore.
Advent and Aditya Birla Group spokespersons declined comment when approached by The Economic Times.
The transaction could be done at a 3-6 percent premium to the current market price, and Advent might get a board seat, a source told ET.
Advent has already invested in India’s financial services space in companies such as Computer Age Management Services (CAMS) and Ask Investment Management.
“There is a holding company discount but this is a good time to take a bet on the financial services space after most companies have been beaten down,” an executive from Advent told the newspaper.
Advent is also exploring the option of infusing capital into Yes Bank, media reports suggest.