Aditya Birla Capital Closes 5% Lower In Stock Market Debut

Shares of Aditya Birla Capital Ltd. were locked in 5 percent lower circuit at Rs 237.50 on the National Stock Exchange on Friday. The stock began trading at Rs 250 apiece and rose 2 percent before retreating.

The financial services arm of the Aditya Birla Group had its shares listed in a trade-to-trade segment which does not allow intra-day trading to curb speculation. This means that investors will have to either give or take delivery of the shares sold or bought.

The listing was a culmination of the composite scheme of arrangement, under which Aditya Birla Nuvo was merged with Grasim Industries and the financial services undertaking was subsequently demerged into Aditya Birla Capital.

The company plans to foray into health insurance and asset reconstruction and will be “happy to look into a deal that creates value”, Kumar Managalam Birla, chirman of Aditya Birla Group told BloombergQuint.

As of now, more than 27 percent the total 220.1 crore shares stand with public shareholders, while promotor Grasim holds 55.94 percent and the Birla family holds 16.75 percent.

The non-banking financial company grew at a compounded annual growth rate of 44 percent in the last four years, according to data accumulated by BloombergQuint. Brokerage Investec expects a CAGR of 22 percent over the next three years for the segment.