Aditya Birla Capital Plans ₹4,000 Crore Equity Issue at ₹356.02 Per Share

Aditya Birla Capital Limited has notified the stock exchanges of an upcoming board meeting scheduled for May 20, 2026, wherein the board of directors will consider a proposal to raise funds through the issuance of equity shares or other securities. The intimation was filed on May 16, 2026, by Company Secretary & Compliance Officer Santosh Haldankar, pursuant to Regulation 29(1)(d) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. In a significant development, the company has outlined plans to issue equity shares at ₹356.02 per share to raise up to ₹4,000 crore through a preferential allotment to select investors.

Fund-Raising Details

The proposed equity issuance will be directed at three identified allottees, with the total fund raise capped at ₹4,000 crore. The breakdown of the proposed allotment is as follows:

Allottee: Amount (₹ Crore) Grasim Industries: 2,880 Suryaja Investments: 200 IFC (International Finance Corporation): 920 Total: 4,000

All equity shares will be issued at a price of ₹356.02 per share.

Board Meeting Details

The board meeting has been convened, inter alia, to evaluate and deliberate upon the fund-raising proposal. The key parameters of the scheduled meeting are outlined below:

Parameter: Details Meeting Date: May 20, 2026 Filing Date: May 16, 2026 Regulatory Reference: Regulation 29(1)(d) of SEBI Listing Regulations Purpose: Consideration of fund raising via equity shares or other securities Signatory: Santosh Haldankar, Company Secretary & Compliance Officer

Fund-Raising Modes Under Consideration

The board will consider raising funds through one or more of the following permissible modes, or a combination thereof, as may be permitted under applicable laws:

Qualified Institutional Placement (QIP)

Preferential Allotment

Any other methods as permitted under applicable laws

The fund-raising, if approved, will be governed by the Companies Act, 2013, read with the rules notified thereunder, and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. Any such issuance will remain subject to all requisite regulatory, statutory, and corporate approvals as may be required.

Regulatory Compliance

The intimation has been duly communicated to BSE Limited and The National Stock Exchange of India Ltd, in accordance with SEBI Listing Regulations. Copies of the communication have also been marked to the Luxembourg Stock Exchange, Citi Bank N.A. (Custodial Services and Depository Receipt Services), and the Listing Agent, Banque Internationale à Luxembourg SA, reflecting the company's international listing and depository obligations.

Aditya Birla Capital Limited has disclosed, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has received an income tax notice dated 15 May 2026 under Section 143(1) of the Income Tax Act, 1961. The notice was issued by the Centralised Processing Centre (CPC), Income Tax Department, and pertains to Assessment Year 2025-26 (Financial Year 2024-25), resulting in a tax demand of Rs. 194.54 crore.

Background: ABFL Amalgamation

The tax demand is directly linked to the amalgamation of Aditya Birla Finance Limited (ABFL), a wholly owned subsidiary of the Company, with Aditya Birla Capital Limited. Pursuant to the order of the Hon'ble National Company Law Tribunal (NCLT) dated 24 March 2025, ABFL was amalgamated with the Company with effect from 1 April 2025, with an appointed date of 1 April 2024. Following the amalgamation, the Company filed a consolidated return of income for FY 2024-25 (AY 2025-26) under its own PAN on 10 December 2025, with a revised return filed on 31 December 2025, offering to tax the combined income of ABFL and the Company.

Details of the Tax Demand

The Company had claimed credit for Advance Tax of Rs. 222 crore paid by ABFL and Tax Deducted at Source (TDS) of Rs. 816 crores deposited or deducted under ABFL's PAN, in line with the amalgamation. However, the CPC did not grant the advance tax credits relating to ABFL, resulting in the income tax demand of Rs. 194.54 crore. The key details of the notice are summarised below:

Parameter: Details Notice Date: 15 May 2026 Issuing Authority: Centralised Processing Centre (CPC), Income Tax Department Applicable Section: Section 143(1) of the Income Tax Act, 1961 Assessment Year: 2025-26 (Financial Year 2024-25) Tax Demand Raised: Rs. 194.54 crore Quantum of Claims: Rs. 222 crore Reason for Demand: Non-migration of tax credits from ABFL's PAN to Company's PAN

Company's Position and Next Steps

Aditya Birla Capital has stated that the demand has arisen solely on account of technical reasons pertaining to the non-migration of tax credits from ABFL's PAN to the Company's PAN consequent to the amalgamation, even though the corresponding income has already been offered to tax by the Company. The Company has confirmed that this demand does not represent any short payment of tax. It has further indicated that a necessary application will be filed with the Income-tax Department for rectification and appropriate credit of taxes already paid. The Company does not foresee any material impact on its financial, operational, or other activities as a result of this demand.

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