New Delhi : Minority shareholders of Grasim Industries and Aditya Birla Nuvo Ltd (ABNL) have approved the mega merger of the two companies to create a nearly Rs 60,000-crore diversified entity.
“The shareholders of Grasim, ABNL and Aditya Birla Financial Service Ltd at their meetings held on April 6 and April 10, 2017, respectively, have approved the scheme of amalgamation of ABNL with Grasim,” billionaire Kumar Mangalam Birla-led ABNL said. This would be followed by demerger of its financial service business as directed by the National Company Law Tribunal, it added. The merged entity would be “among the top five fund managers in India with funds under management of Rs 2,29,500 crore and among top seven non HFC NBFC in India with a lending book of Rs 29,852 crore”. Commenting on the development, Aditya Birla Group Chairman Kumar Mangalam Birla said: “The merger will create one of the India’s largest companies. It will undeniably lead to shareholder’s value by bringing together the strong balance sheet of Grasim and the high growth potential of ABNL’s business.”
He further said: “The portfolio would now span the manufacturing and services business with leadership position in cement, financial services, telecom, textiles and chemicals sector.” The scheme would be effective from the second quarter of this fiscal after getting necessary approvals from regulators and exchanges as NCLT, BSE and NSE, reports PTI.
“The scheme is expected to be effective during the second quarter of the current financial year,” the company said. Aditya Birla Group in August last year announced the merger plan through a stock swap and spin off its financial services business into a separate unit.
