Title :- Relation of Aditya Birla Capital LTD with Nifty and Fifty and to calculate Beta.
Author :- Ankita Gharat
Introduction :- Aditya Birla Capital is a prominent financial services company based in India. It is part of the Aditya Birla Group, a conglomerate with diverse business interests. Aditya Birla Capital offers a wide range of financial solutions such as insurance, asset management, lending and wealth management services.
Objective :- 1 line to calculate the Beta Aditya Birla Capital Limited to see its significant.
Literature View :-
1.Aditya Birla Capital Ltd (Aditya Birla Capital), is a subsidiary of Grasim Industries Ltd, is a provider of financing and advisory solution. Its retail offerings include insurance coverage for life, health, motor, and travel; financing solutions, which consists of financing for the home, personal, SME, real estate and loan against securities; investment management solutions; wealth and portfolio management; pension funds; and securities and stocks among others.
2.The stake sale will be executed at an enterprise value of Rs 455 crore
Aditya Birla Capital Limited (ABCL) on Monday said its board of directors has approved the sale of its entire stake in Aditya Birla Insurance Brokers Limited (ABIBL).
The stake sale by ABCL will be executed at an enterprise value of Rs 455 crore.
“The Company (ABCL) shall be entitled to receive 50.002 per cent of any consideration (including additional consideration) paid by the Purchaser in lieu of its acquisition of 100 per cent of ABIBL’s issued and paid-up share capital in accordance with the SPA,” mentioned ABCL in its BSE regulatory filing.
The holder of rest of the stake in ABIBL, Infocyber India Private Limited (Infocyber), will also sell its 25,64,897 equity shares of Rs 10 each, representing the balance 49.998 per cent of the issued and paid-up share capital of ABIBL.
In FY2021-22, ABIBL contributed consolidated revenue of Rs 684.52 crores to ABCL and its net worth (50.002 per cent share) was Rs 64.85 crore, aggregating to 3.08 per cent and 0.42 per cent of ABCL’s consolidated revenue and net worth, respectively, for FY 2021-22.
Data Collection:-
The data for Nifty 50 and Equity of Aditya Birla Capital Limited has been downloaded from nseindia.com from the period 1st November 2022
To 31st October 2023. The data was analyzed to find out the Friday closing prices of Nifty 50 and Equity of Adani Green Energy Limited viz, as weekly returns of NSE Index Nifty 50 as ‘X’ and weekly returns of Equity of Aditya Birla Capital Limited on NSE as ‘Y’ .
Wherein, ‘ Y’ (Equity of Aditya Birla Capital Limited) was regressed on ‘X’ (Nifty 50) and a relationship between the two plotted.
Data Analysis:-
Aditya Birla Capital Limited = -0.202+0.005
N= 48 R square= 0.183 , F= 0.02
The above equation shows the relationship of `Aditya Birla Capital Limited` with `Nifty`
If Nifty rises by 1 unit, `Aditya Birla Capital will rise
t-stat for b is 0.429 and the p value is which is more than 0.05 so b=, meaning `Nifty` does not impact `Aditya Birla Capital LTD`
R square is 0.03, meaning there is relationship at all, nothing is explained by Nifty.
F= 0.184 and p value is more than 0.05, so the model is not statistically significant at 5% level, further Nifty does not affect the share significantly.
Conclusion:-
The results indicate that beta ( 0.044 )is less than 1, so good for long term investment.
References:-
https://www.proquest.com/reports/aditya-birla-capital-ltd-abcapital/docview/2488120368/se-2
https://www.proquest.com/magazines/aditya-birla-capital-sell-entire-stake-insurance/docview/2791601241/se-2