Mumbai : Ahmedabad bench of National Company Law Tribunal (NCLT), have approved merger of Aditya Birla Nuvo Ltd (ABNL) and Grasim.
This will be followed by the listing of Aditya Birla Financial Services Ltd (ABFSL).
As per the statement issued, the merged entity will have consolidated revenue from operations of Rs 54,824 crore, EBITDA of Rs 12,259 crore and a net profit after tax and minority interest of Rs 4,076 crore for the year ended March 31, 2017.
The financial services company will be listed in BSE and the NSE, with effect from the second quarter of the financial year 2017-18.
Aditya Birla Group, chairman, Kumar Mangalam Birla said, “This merger marks a milestone bringing together the financial strength provided by the debt free balance sheet of Grasim and the growth opportunities offered by ABNL’s financial services business. I believe, the merger will enable fast paced growth and create enormous shareholders’ value.”
Sushil Agarwal, group CFO of Aditya Birla Group said, “This combination of Grasim’s cash generating manufacturing businesses and ABNL’s high growth service sector businesses, is a win-win for the both the set of shareholders.”
He added that Aditya Birla Financial Services has scaled up its AUM at a CAGR of 23 per cent to $38 billion and lending book at CAGR of 61 per cent to $6 billion during past five years.