MUMBAI: The market capitalisation of Aditya Birla Group companies crossed $100 billion for the first time on Friday riding on a rally in shares of UltraTech, Hindalco, and Vodafone Idea.
The combined valuation of the 12 companies in the group stood at nearly Rs 8.5 lakh crore, which translates to over $102 billion. The group’s market capitalisation during the current year has improved by 11%, which is more than twice the gain in Nifty or the sensex.
Although there are a dozen listed companies, nearly 35% of the group’s valuation comes from UltraTech, which has a market capitalisation of Rs 2.95 lakh crore – making it the third most valuable cement company in the world. UltraTech shares have been on the upswing after it reported a 35% increase in net profit for the March quarter.
Grasim Industries, which accounts for 20% of the group’s value in the stock market, has seen its market capitalisation double in the last three years. Grasim has a sizable share in the global man-made fibre market. Besides announcing a capacity expansion, the company has also announced a diversification into the paints business. Grasim is also the holding company for UltraTech and Aditya Birla Capital, which houses the group’s financial services businesses.
In percentage terms, the biggest gainer in the group has been Vodafone Idea, which has nearly tripled its market capitalisation in a year. This included the equity expansion following its Rs 18,000-crore follow-on public offer. The listed financial services businesses of the group – Aditya Birla Capital, Aditya Birla Sun Life AMC, and Aditya Birla Money – contribute to nearly 9% of the group’s valuation.
