Aditya Birla Capital Shares in Focus; Invests ₹23 Crore in Health Insurance Arm

Aditya Birla Capital, a leading non-banking financial company (NBFC), has infused close to ₹23 crore into its health insurance subsidiary, Aditya Birla Health Insurance (ABHI), through a rights issue. The investment aims to bolster the solvency margin of the standalone health insurer.

In its exchange filing, Aditya Birla Capital stated, “Aditya Birla Capital Limited… has made an investment of ₹22,94,35,335 on rights basis, in the equity shares of Aditya Birla Health Insurance Co. Limited.” ABHI allotted these equity shares on December 24.

On December 26, 2024, Aditya Birla Capital’s share price dipped by 1.07%, reaching ₹184.30 at 2:48 PM (IST). According to BSE data, the stock recorded a total traded volume of 1.44 lakh shares, resulting in a turnover of ₹2.66 crore.

Continued Ownership and Solvency Margin Compliance

With this latest acquisition, Aditya Birla Capital retains a 45.89% ownership in ABHI. The funds are being directed toward meeting the insurer’s solvency margin, ensuring compliance with regulatory requirements.

The Insurance Regulatory and Development Authority of India (IRDAI) mandates a minimum solvency ratio of 150%. This ratio is a critical measure of capital adequacy, reflecting an insurer’s ability to pay claims, address contingencies, and support future business growth plans.

Improved Financial Performance

In Q2 of FY25, ABHI reported a net loss of ₹65 crore, an improvement from the ₹79 crore net loss recorded in the same period last year.

Aditya Birla Capital Leads on ONDC Platform

Aditya Birla Capital said that it has become the first BFSI (banking, financial services, and insurance) company to offer three core financial services on the Open Network for Digital Commerce (ONDC) platform. The services include lending, insurance, and mutual funds.

Through the ONDC network, various live buyer apps can now provide Aditya Birla Capital’s personal loans, health insurance, and mutual fund products to their customers. This milestone underscores the company’s commitment to leveraging digital platforms to expand its reach and offer seamless financial solutions.

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