In an exchange filing, the company said that its board has approved the sale of entire 25,65,103 equity shares of Rs 10 each, representing 50.002% of the issued and paid-up share capital of ABIBL to Edme Services, which is part of the Samara Capital Group and an affiliate of Samara Alternate Investment Fund.

Infocyber India, the other shareholder of ABIBL, will also sell its 25.64 lakh shares, or 49.998% of the company, to Edme Services.

The total enterprise value of the transaction is set at Rs 455 crore on a cash-free and debt-free basis, with closing adjustments subject to the terms of the share purchase agreement (SPA).

Aditya Birla Capital and Infocyber India may receive an additional consideration after completion of five years from the closing which is conditional upon the fulfilment of certain conditions under the SPA.

The company will be entitled to receive 50.002% of any consideration (including additional consideration) paid by Edme Services in lieu of its acquisition of 100% of ABIBL's issued and paid-up share capital in accordance with the SPA, the firm stated in the press release.

“The proposed transaction is subject to receipt of the approval of Insurance Regulatory and Development Authority of India (IRDAI) and other regulatory / statutory approvals and satisfaction of other conditions under the SPA. Upon completion of the proposed transaction, ABIBL shall cease to be a subsidiary of the company.” the statement said.

Aditya Birla Capital is the holding company for the financial services businesses of the Aditya Birla Group.

The company recorded a consolidated net profit of Rs 3,269.40 crore in Q3 FY23, steeply higher than Rs 576.74 crore posted in Q3 FY22. Total income surged 67.4% year on year to Rs 9,722.23 crore in the quarter ended 31 December 2022.