India's Aditya Birla Capital Ltd (ABCL) said on Monday it will merge with its unit Aditya Birla Finance and turn into an operating non-banking financial company from a holding company.

On a proforma basis, total assets of the merged company as of Dec. 31 stood at 1.10 trillion rupees ($13.30 billion), and it expects an around 150 basis point increase in total capital adequacy ratio, it said in a statement.

After the merger, Aditya Birla Capital would be a unified entity with "greater financial strength and flexibility enabling direct access to capital," it said, adding that there would be no change in the shareholding structure and management.

ABCL's shares have gained 8.1% so far this year after rising 10.8% in 2023.

($1 = 82.7210 Indian rupees)

(Reporting by Sethuraman NR in Bengaluru; Editing by Sonia Cheema)