Aditya Birla Capital shares rise nearly 3% to 52-week high despite Advent’s partial stake sale worth ₹568 crore

Shares of Aditya Birla Capital surged nearly 3 percent in intraday trading on Wednesday, June 11, touching a fresh 52-week high of ₹249.80, even as private equity major Advent International partially exited its holding through a block deal. The transaction saw around 2.34 crore shares, equivalent to a 0.9 percent stake and valued at approximately ₹568 crore, change hands at ₹242.70 per share.

According to media reports, Jomei Investments—Advent International’s special purpose vehicle—had initiated a larger block deal a day earlier, on Tuesday, June 10. The deal was set to offload a 1.4 percent stake in Aditya Birla Capital, pegging the total transaction value at around ₹856 crore. The floor price for the deal was fixed at ₹237.80 per share, representing a 2 percent discount to the stock’s closing price in the previous session. Despite the discounted pricing and sizeable deal, the stock remained resilient, reflecting continued investor confidence in the company’s fundamentals and growth outlook.

As of March 2025, Advent held a 3.84 percent stake in Aditya Birla Capital. The latest transaction marks a partial exit and the offloaded shares will be under a 30-day lock-in period. Advent originally invested ₹1,000 crore in 2020 through a preferential allotment of 10 crore equity shares at ₹100 each. Based on the current floor price of ₹237.80, Advent stands to clock an impressive return of 138 percent on its initial investment.

Robust Stock Performance

Aditya Birla Capital's stock has been on a steady uptrend, rising 68 percent from its 52-week low of ₹148.75 touched in February 2025. In the past one year, the stock has delivered a 4 percent return. The momentum has picked up considerably in recent months, with gains of 11 percent in June alone. This follows a 13 percent rise in May, 6 percent in April, and an 18 percent surge in March. The only notable dip came in February, when the stock declined 13 percent.

Financial Performance in Q4 FY25

The company’s solid financial performance has also underpinned investor optimism. For the quarter ended March 31, 2025, Aditya Birla Capital reported a consolidated net profit of ₹865 crore, reflecting a 6 percent year-on-year increase when adjusted for one-time gains. In the corresponding quarter of FY24, the firm had reported a net profit of ₹1,245 crore, which included exceptional income from a stake sale in its asset management business via an Offer for Sale. Excluding the one-off, the net profit stood at ₹812 crore.

Total income for the fourth quarter of FY25 rose to ₹12,239 crore, up from ₹10,803 crore in the same period last year. The company’s overall lending book, including NBFC and HFC segments, grew 27 percent YoY to ₹1,57,404 crore. Additionally, total assets under management (AUM) across its asset management, life insurance, and health insurance businesses climbed 17 percent YoY to ₹5,11,260 crore. The total premium collected from life and health insurance businesses also rose by 22 percent to ₹25,579 crore in FY25.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.