Moneycontrol
Last Updated : Oct 06, 2016 10:41 PM IST | Source: PTI

Grasim to issue 15 shares for every 10 AB Nuvo shares

This follows the stock split of Grasim Industries where its equity share of Rs 10 face value has been sub-divided into 5 shares of Rs 2 face value with effect from October 6, 2016, it said in a regulatory filing.

 
 
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Grasim Industries today said that as part of its proposed merger scheme, 10 shares of Aditya Birla Nuvo Ltd (ABNL) will get 15 shares of the firm.


This follows the stock split of Grasim Industries where its equity share of Rs 10 face value has been sub-divided into 5 shares of Rs 2 face value with effect from October 6, 2016, it said in a regulatory filing.


Following the share split, the filing said: "Fifteen equity shares of Rs 2 each of Grasim Industries credited as fully paid up for every 10 equity shares of Rs 10 each held by shareholders of ABNL." On demerger of its financial services arm, it said that 7 equity shares of Rs 10 each of Aditya Birla Financial Services Ltd (ABFSL) credited as fully paid up for every 5 equity shares of Rs 2 each held by shareholders of the demerged company (Grasim).


In a consolidation exercise announced in August, the USD 41 billion Aditya Birla Group said it plans to merge ABNL with Grasim Industries to create a nearly Rs 60,000-crore diversified entity that will be among the largest in India.


As part of the plan, financial services business of the merged entity will be hived off and merged with ABFSL, a wholly-owned arm of ABNL and will be listed subsequently.


The group said that for merger of ABNL with Grasim, each shareholder of ABNL will get three new equity shares of Grasim for every 10 equity shares held in ABNL.


On the other hand, for demerger of financial services business into ABFSL, each shareholder of Grasim (post merger) will receive seven equity shares in ABFSL for every one equity share held in Grasim.

The transaction is expected to be completed by the fourth quarter of this fiscal or the first quarter of 2017-18.

First Published on Oct 6, 2016 10:22 pm
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