The Board of Directors of Grasim has approved the proposed merger of the Aditya Birla Chemicals (India) Limited (ABCIL), another Aditya Birla Group company, with Grasim.
Grasim’s board of directors approved the swap ratio of 1 share of Rs. 10 each of Grasim for every 16 shares of Rs. 10 each of ABCIL, a Grasim press release said. Grasim will issue 14.62 lakh new shares, which will increase its share capital to Rs. 93.31 crore, the release added.
With an installed capacity of around 452,500 tonne per annum, Grasim is a leading manufacturer of caustic soda, which is inter-alia used as an input in the manufacturing of viscose staple fibre (VSF), which is a major business of Grasim. Its plants are located at Nagda (Madhya Pradesh) and at Vilayat (Gujarat), where a unit was recently commissioned.
ABCIL is one of the leading chlor-alkali companies in India with three manufacturing plants located at Rehla (Jharkhand), Renukoot (UP) and Karwar (Karnataka) with an installed capacity of around 293,000 tonne of caustic soda per annum and 110 MW of captive power plant.
The merger of ABCIL with Grasim will consolidate Aditya Birla Group’s chlor-alkali business into Grasim, and strengthen its existing portfolio of VSF, caustic soda and allied chemicals in the standalone company.