Aditya Birla Capital hits lower circuit, down by 5 per cent

The newly listed Aditya Birla Capital of the Aditya Birla Group plunged to a lower circuit limit of 5 per cent in the early trade on Monday. The company had made its stock market debut on Friday, September 1.
 
The scrip that had got listed at a price of Rs 250, slumped by 5 per cent to Rs 225.65 on Monday. The company had got listed as an outcome of the merger of Aditya Birla Nuvo with Grasim Industries, which was further demerged into Aditya Birla Capital Limited.
 
While the listing of ABCL will help it to penetrate into markets for funds, it will also provide the company access to the cash flows of Grasim Industries. Further, the listing has doubled the shareholder value to Rs 1.2 lakh crore.  
 
Engaged in non banking financial services, mutual funds and insurance through ABCL, Aditya Birla Group is planning to enter the asset reconstruction business as well.   
 
The company’s competitors, Piramal Enterprises and Bajaj Finance have also announced plans to raise funds by stake sale through qualified institutional placement (QIP).
 
At 0100 hrs IST, Piramal Enterprises was trading at Rs 2686, down by 2.96 per cent, whereas, Bajaj Finance was trading at Rs 1793.30, down by 0.37 per cent.