Aditya Birla Capital partners with Varde Partners

Aditya Birla Capital and Varde plan an exclusive partnership to strategically invest in stressed assets in India, through a joint venture. Varde has invested approximately US$500 million in India across corporate distressed, stressed and special situations and lending assets in the past five years.

The two companies Aditya Birla Capital Limited (ABCL) and Varde Partners will hold 50 per cent controlling stake in the joint venture company Aditya Birla ARC, subject to regulatory clearance. Presently, Aditya Birla ARC is a wholly-owned subsidiary of ABCL.

Varde Partners is a global investment adviser with expertise in credit and value investments in distressed asset space. ABCL and Varde also plan to create a jointly owned investment advisor firm, which will be registered with SEBI.

Through this JV, ABCL aims to strengthen its ARC business and tap opportunities in the domestic distressed asset space, predominately in the mid-corporate segment.

Meanwhile on Thursday, the stock of Aditya Birla Capital Limited opened at Rs. 140.70 per share and at around 10:30 hours, it was trading at Rs. 142.85 per share, up by 4.08 per cent, when the benchmark BSE Sensex was at 38,683.30, down marginally 0.10 per cent.