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India's Aditya Birla Capital to raise 21B rupees in share sale

India's Aditya Birla Capital Ltd. plans to raise 21 billion rupees by selling 210 million shares to existing shareholders and new investors on a preferential basis.

The company's board approved a proposal to sell 100 million equity shares to Aditya Birla promoter company Grasim Industries Ltd. and other affiliates. It will also sell 100 million shares and 10 million shares to affiliates of U.S.-based Advent International Corp. and PremjiInvest, respectively.

The shares will be sold at 100 rupees per share, which represents a premium of 10.62% to the company's Sept. 4 closing share price of 90.40 rupees, according to a Sept. 5 filing.

Aditya Birla's shareholders will consider the proposed issuance at an extraordinary meeting on Oct. 5. The issuance is also subject to regulatory approvals.

Following the preferential allotment, Grasim Industries and the promoter group entities will hold about 70.54% Aditya Birla; PremjiInvest will hold about 4.11% through its affiliates; and Advent International will hold about 4.15% of the company. The announcement came after The Economic Times previously reported that Advent International was in advanced discussions to acquire a 6% to 7% stake in the financial services company.

Aditya Birla added that it will use the funds to grow its businesses and repay outstanding debt.

As of Sept. 5, US$1 was equivalent to 71.84 Indian rupees.