Aditya Birla Money seeks approval for Rs 200 crore issue

Aditya Birla Money Limited is seeking shareholder approval on December 11, 2026 to issue up to Rs 200 crore of 5% cumulative non-convertible redeemable preference shares, including Rs 140 crore for promoter and holding company Aditya Birla Capital Limited; full five-year redemption would total Rs 254.04 crore if all shares are issued.

What is Aditya Birla Money asking shareholders to approve?

Aditya Birla Money is seeking approval to privately place up to 2 crore 5% cumulative non-convertible redeemable preference shares, or NCRPs, at Rs 100 each for aggregate proceeds of up to Rs 200 crore. Its board approved the proposal on November 14, 2026, subject to the required approvals, including shareholder approval.

The proposal has two series. Series 1 comprises up to 1.40 crore preference shares worth Rs 140 crore for Aditya Birla Capital Limited, identified in the filing as Aditya Birla Money's promoter and holding company. Series 2 comprises up to 60 lakh preference shares worth Rs 60 crore for Alpha Alternatives Fund Advisors LLP fund schemes, West Coast Paper Mills Limited and Andhra Paper Limited.

The securities would be issued through private placement in one or more tranches and would not be listed on a stock exchange. Both series are described as non-convertible, and the disclosure does not provide for their conversion into equity shares.

How are Aditya Birla Money's preference shares structured?

Aditya Birla Money proposes 5% cumulative NCRPs with a face value and issue price of Rs 100 per share. Holders would receive a dividend at 5% a year on a cumulative basis, according to the November 14 disclosure, although it does not specify dividend payment dates or frequency.

Each series would have a tenure of five years from its allotment date. The allotment and maturity dates have not been set, as the filing says they will be decided subject to shareholder approval at the December 11, 2026 meeting.

Aditya Birla Money would have the right, at its sole discretion, to redeem the shares after completion of three years from issuance. The filing records no charge or security over company assets and no special rights, interests or privileges attached to either series.

Who would receive Aditya Birla Money's Rs 200 crore issue?

Aditya Birla Money proposes to allocate Rs 140 crore, or 70% of the maximum Rs 200 crore issue, to Aditya Birla Capital Limited through Series 1. The remaining Rs 60 crore, or 30%, would be placed through Series 2 with the three outside investors.

Alpha Alternatives Fund Advisors LLP fund schemes would receive up to Rs 50 crore, while West Coast Paper Mills Limited and Andhra Paper Limited would each receive up to Rs 5 crore. Alpha Alternatives' proposed allocation is therefore ten times each of the two Rs 5 crore allocations.

The issue to Aditya Birla Capital Limited also requires approval as a material related-party transaction under Regulation 23 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations. The board approved the related-party proposal alongside the proposed preference-share issue on November 14, 2026.

What redemption amounts could Aditya Birla Money pay?

Aditya Birla Money states that Series 1 would be redeemable after five years at Rs 127.02 per share, including a premium of Rs 27.02 per share. If the full Rs 140 crore Series 1 issue is made, the disclosed maturity redemption amount would be Rs 177.83 crore.

For the Rs 60 crore Series 2 issue, the same Rs 127.02 per-share redemption price would apply after five years. The disclosed redemption amount is Rs 63.51 crore for Alpha Alternatives Fund Advisors LLP fund schemes and Rs 6.35 crore each for West Coast Paper Mills Limited and Andhra Paper Limited.

The disclosed full five-year redemption amount across both series is Rs 254.04 crore. Aditya Birla Money may instead use its three-year call option at Rs 115.43 per share, resulting in disclosed amounts of Rs 161.60 crore for Series 1, Rs 57.72 crore for Alpha Alternatives, and Rs 5.77 crore for each Rs 5 crore Series 2 allotment.

When will Aditya Birla Money shareholders vote on the issue?

Aditya Birla Money has convened an Extraordinary General Meeting on December 11, 2026 at 12 noon Indian Standard Time to seek approval for the issue and the Aditya Birla Capital Limited related-party transaction. The meeting will be conducted through video conferencing or other audio-visual means.

The board meeting on November 14, 2026 began at 1:15 pm and concluded at 3:15 pm. Shareholder approval is necessary before the company determines the allotment and maturity dates for the proposed five-year instruments.

At the same meeting, Aditya Birla Money appointed Senthilkumar N as chief business officer and senior management personnel, and Dipesh Sohani as head of institutional sales and senior management personnel. Both appointments took effect on November 14, 2026 and were based on the nomination and remuneration committee’s recommendation.

Conclusion

Aditya Birla Money's proposed funding combines a Rs 140 crore allocation to its promoter and holding company with Rs 60 crore from three outside investors. The unlisted, non-convertible shares would carry a 5% cumulative annual dividend, with a stated five-year redemption amount of Rs 254.04 crore if the company issues the full 2 crore shares.

The next disclosed event is the December 11, 2026 Extraordinary General Meeting, where shareholders will vote on the issue and the related-party transaction. If approvals are received, the points to watch are the actual number of shares allotted in one or more tranches, the allotment date and whether Aditya Birla Money exercises its three-year call option or retains the shares until five-year maturity.