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 both the companies at their meetings recently have approved the scheme of amalgamation of ABNL with Grasim,” Kumar Mangalam Birla-led ABNL said in a regulatory filing.
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.”
“The portfolio would now span the manufacturing and services business with leadership position in cement, financial services, telecom, textiles and chemicals sector,” he said.
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.
In the merged entity, which will retain the name Grasim, Aditya Birla Group will hold 39 per cent stake and the remaining 61 per cent will be with the public.
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