Aditya Birla Capital share price jumps 4% as board approves subsidiary IPO

Aditya Birla Capital share price added more than 4 percent in the early trade on March 17 as company board gives approval to explore initial public offering of its subsidiary.

The board of directors of Aditya Birla Capital has provided the in principle approval to explore an initial public offering of Aditya Birla Sun Life AMC Limited, a material subsidiary of the company subject to market conditions, receipt of applicable approvals and other considerations.

An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company gives the share to the investors in the company.

The share touched its 52-week high Rs 139.60 and 52-week low Rs 37.45 on 09 March, 2021 and 24 March, 2020, respectively. The share price rose 150 percent in last nine months.

Aditya Birla Financial Services Group (ABFSG) is an umbrella brand for all the financial service businesses of the Aditya Birla Group. They have a significant presence across life insurance, asset management, NBFC, infrastructure project and structured finance, private equity, broking, wealth management and distribution, online money management, and general insurance advisory services.