Advent International's Arm Exits India's Aditya Birla Capital
Jomei Investments Ltd, an affiliate of global private equity firm Advent International, has divested its remaining 2% equity stake in Aditya Birla Capital (ABCL) through a block deal. The transaction involved the sale of 53.2 million shares at a price of ₹304.55 per share, amounting to ₹1,623.75 crore (approximately $186.47 million).
This marks the complete exit of Advent International from Aditya Birla Capital, following a previous stake sale in June 2025. In June, Jomei Investments sold a 1.4% stake in ABCL for ₹856 crore. The US firm had invested ₹1,000 crore in 2020 in Aditya Birla Capital through a preferential issue and was allotted 10 crore fully paid-up equity shares for ₹100 apiece.
The recent sale was executed at a slight discount compared to the previous day's closing price. IIFL Capital was the broker for the deal. According to data from the Bombay Stock Exchange (BSE), Jomei Investments held a 3.84% stake in Aditya Birla Capital as of March 2025.
The stake sale reflects Advent International's investment strategy and potentially signals their perspective on Aditya Birla Capital's valuation. The transaction is expected to raise over ₹1,600 crore. For Aditya Birla Capital, continued interest from institutional investors and recent capital raising efforts through bond issuance suggest a focus on strengthening its financial position and supporting growth initiatives.
Aditya Birla Capital has demonstrated strong market performance, with its stock price gaining 72% year-to-date. The company recently achieved a new 52-week high of ₹318.05, marking a notable achievement for the midcap Non-Banking Financial Company (NBFC). Over the past year, Aditya Birla Capital has delivered impressive returns of 53.30%, significantly outpacing the Sensex's performance of 6.08%.
The company's fundamentals remain strong. In the first quarter of FY26, Aditya Birla Capital reported a 10% year-on-year rise in consolidated net profit to ₹835 crore, driven by steady growth across its financial services verticals. Revenue increased 9.6% YoY to ₹9,502.6 crore, while the company's total lending portfolio expanded to ₹1.66 lakh crore, with a robust 30% annual growth and a 5% sequential increase. The company's mutual fund AUM rose 14% to ₹4.03 lakh crore, while life insurance first-year premium increased 23% to ₹795 crore. The health insurance gross written premium grew 30% to ₹1,357 crore. Aditya Birla Capital is scheduled to announce its Q2FY26 results on Thursday, October 30.
Analysts remain bullish on Aditya Birla Capital. Axis Direct has given a bullish outlook on Aditya Birla Capital Ltd (ABCL), setting a target range of ₹340-375, implying a potential upside of 31-44% from the current market price of around ₹293. The brokerage says that the stock continues to form higher highs and higher lows while remaining above its upward-sloping trendline, signalling a positive medium-term bias.
Following the block deal, Aditya Birla Capital shares opened at ₹316. At the time of writing, Aditya Birla Capital Ltd (ABCL) shares were trading at ₹310.60, down slightly by 0.15 points (0.048%).
