Premji Invest picks up $109m Aditya Birla stake

The Indian private equity firm made the investment from its $1bn PI Opportunities Fund-I.

Bangalore-based private equity firm Premji Invest has picked a 2.2 percent stake in financial services conglomerate Aditya Birla Capital Limited (ABCL) for INR 7 billion ($109 million; €95 million), in a deal valuing the company at INR 320 billion, according to a statement.

Premji Invest invested from PI Opportunities Fund-1.

ABCL is the holding company of the financial services businesses of the Aditya Birla Group. Its businesses include life insurance, asset management, private equity and corporate and personal lending. ABCL’s has over INR 2.4 trillion in assets under management and is present in more than 400 cities in India.

The deal will also see Grasim Industries, a building materials manufacturing company, which was merged with ABCL affiliate Aditya Birla Nuvo in April this year, demerged and listed with effect from 4 July.

Premji Invest, the investment arm of one of India’s largest software exporters Wipro, takes minority stakes in publicly listed, private as well as start-ups focused on retail, textile, healthcare and hospitality sectors in India, according to PEI data.

The firm has backed companies such as e-commerce company Flipkart, eyewear retailer Lenskart and microfinance company Equitas Holdings.

Commenting on the transaction, a spokesperson for Premji Invest, said: “ABCL has built a high-quality customer franchise through a profitable and scalable business model, and achieved significant market leadership in certain segments. We believe this partnership will create significant value for all stakeholders.”