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Aditya Birla Capital files DRHP for AMC business IPO; first step towards value unlocking, says mgmt

Updated : May 17, 2021 22:22:45 IST

Ajay Srinivasan, CEO of Aditya Birla Capital on Monday said that the company has filed a draft red herring prospectus (DRHP) for the AMC business initial public offering (IPO) and listing via OFS is on the anvil.

“We have filed the DRHP for our asset management company. It is an offer for sale (OFS) that will lead to the listing of the asset management company (AMC). So that is the first step in value unlocking that we spoke about last time,” he said in an interview with CNBC-TV18.

“The board will constantly look at different opportunities and avenues to be able to unlock value and we have decided that the AMC opportunity is a great place to do that,” he explained.

The company on Friday also reported the highest ever quarterly net profit of Rs 375 crore for the fourth quarter ended March 2021. It had posted a net profit of Rs 144 crore in the year-ago period.

Srinivasan said that the company is focusing on increasing the mix of retail and SME in lending for better yield, margin, and returns.

“Our approach across all our businesses and lending, in particular, has been to be able to find the right risk-return trade-off. We have always tried to find that place that gives us that right balance and which is why our performance will always be steady and consistent. We have always said that retail and SME the focus area for us and we want to increase our mix in that area because it has higher yields, margins, and we think that leads to better return as well. We have seen that play out in the last quarter and as we continue to do that, going forward you will see that flowing through the return metrics for sure,” he said.

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