Aditya Birla Nuvo and Grasim Industries Limited are set to merge into a combined entity worth $9.4 billion (Rs 62,790 crore approximately), reported Business Standard. After the merger, Aditya Birla financial Services Ltd will be separated through a few schemes of arrangement, and Grasim will hold 57% stake in the demerged financial services company.
Aditya Birla Group Chairman, Kumar Mangalam Birla, said, "The proposed restructuring will create one of India's largest, well-diversified companies with a healthy mix of businesses with steady cash flows and long-term growth opportunities." He said the demerger and listing of financial services business will unlock value for shareholders.
The companies' boards have fixed the share swap ratio 10:3, according to which, a Aditya Birla Nuvo shareholder with 10 scrips will get three of Grasim's. Following the merger, a Grasim shareholder will get seven shares of Aditya Birla Financial Services. The former's stock price fell over 12% since the development started making news, according to The Times of India.