Aditya Birla Real Estate Fund-I, managed by Aditya Birla Sun Life AMC seems to have finally found a way for the investors to exit. After being unable to find investors at a mutually acceptable valuation to liquidate the realty fund, one of the AMCs shareholders will now open up the exit route.
Aditya Birla Capital’s board has approved issuing 7.7 crore shares on a preferential basis to Grasim Industries Ltd for Rs 770 crore. Aditya Birla Sun Life AMC is a JV between Aditya Birla Capital and Sun Life (India) AMC Investments.
The company has said that it will be issuing 2.3 crore equity shares on a preferential basis worth Rs 230 crore to Surya Kiran Investments Pte. Ltd., IGH Holdings Pvt. Ltd. and Pilanl Investment and Industries Corporation Ltd.
It will also issue one crore shares on a preferential basis worth Rs 100 crore to PI Opportunities Fund and another one crore shares on a preferential basis worth Rs 100 crore to Jomei Investments Ltd.
Since June, Aditya Birla Real Estate Fund-I has been unable to liquidate and it failed to secure an exit from eight of its 13 investments. The fund’s life was extended twice for one year each and the extended life expired on August 31, 2018.
Post this development, Aditya Birla Capital, the stock price has been rising for the last 2 days, gaining 5% during this period. The stock touched an intraday high at Rs.92.55, rising almost 2.5%.