Major Block Deal Alert: Advent to Offload 1.4% Stake in Aditya Birla Capital via ₹856 Crore Block Deal

Mumbai, June 11, 2025: Jomei Investments, an entity backed by Advent International, has announced that it will be divesting a 1.4 per cent stake in Aditya Birla Capital Limited (ABCL) through a block deal during Wednesday’s trading session. The transaction is valued at approximately ₹856 crore and includes the sale of 3.6 crore shares of Aditya Birla Capital by Jomei Investments.

The floor price for the block deal has been set at ₹237.80 per share, representing a 2 per cent discount to the stock’s closing price in the previous session.

One key reason for Jomei Investments to divest its 1.4% stake is to monetise its holdings in Aditya Birla Capital. The stake sale has garnered significant attention, given the company’s standing in India’s financial services sector and its recent corporate performance.

A fall in the share price of Aditya Birla Capital was anticipated in the early morning trading session on June 11th. Contrary to expectations, the shares of Aditya Birla Capital were trading at ₹246.84, up 1.72% or ₹4.18, as of around 9:35 AM.

A primary reason for the positive investment sentiment can be attributed to the company’s strong financial performance. Aditya Birla Capital reported a net profit of ₹864.60 crore for Q4 FY25, marking a 31 per cent year-on-year decline from ₹1,245.41 crore. However, the previous year’s figure included a one-time gain, excluding which the profit stood at ₹812 crore. Meanwhile, revenue from operations rose to ₹12,238.92 crore, reflecting the company’s underlying business momentum.

Future Outlook

Despite the stake sale by Advent-backed Jomei Investments, investor sentiment around Aditya Birla Capital remains positive, mainly due to its solid operational revenue growth. The market appears to be looking past the headline profit drop, recognising that last year’s gains included one-time items. ABCL’s return on assets dropped from 2.4 per cent in June 2023 to 2 per cent currently, pointing to margin pressure. Nevertheless, the stock continues to garner attention for its long-term value and strategic positioning in the financial services space.

Note: The floor price and transaction structure are subject to market execution, and block deals may not always reflect retail investor sentiment.

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