Highlights

• Aditya Birla Capital shares rose 3.45% on 3 February 2026, extending one-year gains to 99%.
• Housing finance arm approved ₹2,750 crore primary capital infusion from Advent entity.
• Transaction implies ₹19,250 crore post-money valuation for Aditya Birla Housing Finance.
• Aditya Birla Housing Finance AUM reached ₹42,204 crore as of December 31, 2025.
• Management outlined growth plans linked to policy support and housing finance demand.

Aditya Birla Capital Ltd (NSE:ABCAPITAL) shares surged on 3 February 2026, rising 3.45% to ₹344.55 during the mid-day session. The stock has also gained 99.79% over the past year. Today’s price movement followed a company announcement relating to a board-level decision at its housing finance subsidiary, disclosed earlier in the day.

The boards of Aditya Birla Capital Limited and Aditya Birla Housing Finance Limited approved a proposal for a primary capital infusion of ₹2,750 crore into Aditya Birla Housing Finance Limited. The investment is proposed to be made by Indriya Limited, an entity of Advent International. Completion of the transaction remains subject to shareholder and regulatory approvals, along with other customary conditions.

The proposed transaction places a post-money valuation of ₹19,250 crore on Aditya Birla Housing Finance Limited. Following completion, Aditya Birla Capital Limited is expected to hold approximately 85.7% of the subsidiary, while Advent International would hold around 14.3%.

Operating Metrics and Growth Profile

Aditya Birla Housing Finance has reported rapid expansion in recent years. The company’s assets under management increased at a compound annual growth rate of 48% over the last three years, reaching ₹42,204 crore as of 31 December 2025. It is positioned among the top three housing finance companies in India based on incremental loan book growth during this period.

Asset quality indicators were also disclosed, with a gross stage 3 ratio of 0.54% and a net stage 3 ratio of 0.23% as of the same date.

Strategic Direction Outlined by Management

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said India’s housing sector is being shaped by policy initiatives, affordable housing programmes, and expanding infrastructure, which are driving demand across regions and income segments. He noted that accessible and structured housing finance is expected to support the sector’s next phase, and that the proposed capital infusion is aimed at strengthening Aditya Birla Housing Finance Limited’s financial base and expanding its market reach.

Vishakha Mulye, Managing Director and Chief Executive Officer of Aditya Birla Capital Limited, said the housing finance business has scaled over recent years with a focus on prime, affordable, and construction finance. She highlighted the company’s pan-India distribution network and investments in technology and talent, adding that the capital raise supports the next stage of growth with an emphasis on sustaining momentum and increasing market share.

Shweta Jalan, Managing Partner at Advent International, said the investment reflects confidence in India’s mortgage market and Aditya Birla Housing Finance Limited’s risk and governance framework. She also noted Advent’s conviction in the leadership team as the company moves into its next phase.

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