Aditya Birla Capital Ltd to Discuss Proposed Amalgamation of Aditya Birla Finance Limited Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anuj Singla - BofA Securities - Analyst : So Vishakha, first question is on the capital requirement. So we have -- we will see a 150 basis point increase in capital adequacy. And we recently raised capital as well. So this will further supplement that capital raise. So how do we look at the capital requirements and maybe the future capital raising outlook given the growth trajectory which we have projected.

Question: Anuj Singla - BofA Securities - Analyst : Okay. Got it. And in terms of the operating cost benefits, is there, first of all, in the near term, any operational costs which you need to incur for this amalgamation to go through and any long-term analysis we have done, what kind of benefit we can see in the operational cost maybe in terms

Question: Nidhesh Jain - Investec Bank Limited (SA) - Analyst : What was the timeline for this to go through? And what are the regulatory approvals that we will require?

Question: Nidhesh Jain - Investec Bank Limited (SA) - Analyst : Sure. And what is the view on the RBI approval because recently we are seeing that RBI is not very comfortable with the NBFC holding stake in other lending businesses or other insurance businesses. So do you see any hurdles from that?

Question: Nidhesh Jain - Investec Bank Limited (SA) - Analyst : Sure. And lastly, do you see any changes to the consolidated financials to Aditya Birla Capital, after amalgamation?

Question: Nidhesh Jain - Investec Bank Limited (SA) - Analyst : Will there be any changes to the consolidated financials in terms of net worth, assets or profitability for the merger.

Question: Kunal Shah - - Analyst : No, actually, my question has been answered, it was to do with the regulatory approvals.

Question: Nischint Chawathe - Kotak Securities (Institutional Equities) - Analyst : This again sort of pertains to the regulatory aspects. What is the -- I mean, is there a plan to sort of divest stake in the housing business over time. And is there any kind of discussion with the regulator already on the structure. I think what we have seen in some other listed companies is that, some of these companies have applied for -- as a listed NBFCs, have applied for the HFC, but somehow RBI doesn't seem to be very forthcoming on that. So is there any discussion in terms of whether RBI is okay for us to own a 100% stake in HFC or this has to be diluted? Or how should we think about this?

Question: Nischint Chawathe - Kotak Securities (Institutional Equities) - Analyst : And in the eventuality, you may be okay to merge it with the listed company also, right? I mean in case you want to have one lending entity, which is I guess the...

Question: Bhaskar N. Basu - Jefferies LLC - Analyst : I just had a follow-up call on the approval part, especially with respect to the insurance. So as we've seen incrementally while there have been structures in the past, but incrementally, there has been resistance for RBI to kind of approve an NBFC holding an insurance company as well. So firstly, have you kind of since checked with the RBI on this? And in case this becomes an issue, what's the plan B for that.

Question: Bhaskar N. Basu - Jefferies LLC - Analyst : Okay. And just one housekeeping question. What was the investment on the stand-alone book in AB Capital as on December -- sorry, in ABFL. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. MARCH 11, 2024 / 1:00PM, ADTB.NS - Aditya Birla Capital Ltd to Discuss Proposed Amalgamation of Aditya Birla Finance Limited Call

Question: Bhaskar N. Basu - Jefferies LLC - Analyst : Yes, yes.