Now Reading: Aditya Birla Group won RBI core investment tag after six-year chase
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Aditya Birla Group won RBI core investment tag after six-year chase
Birla Group Holdings Pvt. Ltd (BGHPL), the promoter entity of the Aditya Birla Group, secured a core investment company (CIC) registration from the Reserve Bank of India on 18 November 2025, after first applying in September 2019. The six-year delay came because the RBI repeatedly objected to the group's layered structure and demanded a flatter ownership, regulatory filings show.
BGHPL, which holds stakes in 11 listed Birla companies with a market value of over ₹92,000 crore, had borrowings of ₹22,142 crore as of March 2025, including ₹7,132 crore in commercial paper. As a non-deposit-taking NBFC with assets above ₹100 crore and public borrowings, it needed CIC registration to avoid repaying its debt. The RBI returned BGHPL's application in March 2025, asking for changes to the shareholding structure of three promoter firms that together own 99% of BGHPL.
The company merged six privately held entities into itself, a process approved by the NCLT in early 2024. Mint could not verify what structural changes BGHPL finally made to win the registration, as its shareholder makeup remained unchanged from the March 2025 filing. BGHPL now plans to raise ₹300 crore, and recently announced it will levy a royalty on group companies using the Aditya Birla brand, potentially earning over ₹1,000 crore annually.
Indian Opinion Analysis
The six-year delay highlights how the RBI enforces its post-IL&FS rule capping CIC layers at two within a group. For the Birlas, the CIC tag is essential because BGHPL holds over ₹22,000 crore in public debt, which would be recalled without registration. The RBI's demand for a flatter structure forced a complex merger of six entities, approved by the NCLT only in early 2024. Even after that, the RBI returned the application in March 2025, objecting to the shareholding structure of three promoter firms. The registration finally granted in November 2025 allows BGHPL to keep borrowing, but also brings tighter oversight. The next number to watch: BGHPL's planned ₹300-crore fundraise, the first test of its new CIC status.
Source: livemint.com
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