Aditya Birla Group is set to pump in Rs 1,250 crore into its financial services arm Aditya Birla Capital Ltd.The board of Aditya Birla Capital Ltd (ABCL), which is into lending, asset management and insurance, on Thursday approved a preferential issuance of Rs 1,250 crore to its promoter and promoter group entity, according to a statement on Thursday.

Recently, ABCL announced its intent to raise Rs 3,000 crore, and its chief executive and managing director Vishakha Mulye had told reporters that any of the businesses needing capital will get capital to fuel its growth. ABCL said the preferential issuance will be undertaken at a price of Rs. 165.1 per equity share and is subject to shareholders’ approval. Shares of the company closed 0.91 per cent up at Rs 171.70 a piece on the BSE on Thursday.

Group flagship Grasim Industries also will invest Rs 1,000 crore while Surya Kiran Investments, another group entity, will invest Rs 250 crore in the preferential issue, the statement said.The funds raised will be used for augmenting the capital base, improving the solvency margin and leverage ratio, meeting the growth and funding requirements.

They will also be deployed in one or more subsidiaries/associates/joint ventures of ABCL engaged in certain businesses and technology, IT infrastructure and digital offering platforms, it added.An extraordinary general meeting of ABCL will be held on June 24 for seeking an approval of the total fund raise proposal of up to Rs 3,000 crore, the statement said.