Grasim Industries cracks 22% after demerger of Aditya Birla Capital

With 160 deals, IT and ITES was the busiest sector followed by manufacturing and healthcare (47). The banking, financial services and insurance (BFSI) space was third, recording 41 deals. Let's take a look at the biggest mergers and acquisitions in India this year. (Representative image)

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26 Aug, 2025 12:21

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Grasim Industries shares fell more than 22 percent in morning trade Wednesday on account of demerger of Aditya Birla Capital (formerly known as Aditya Birla Financial Services).

The company informed stock exchanges that it has fixed July 20 as record date-2 pursuant to Part III of the composite scheme of arrangement between Aditya Birla Nuvo and Grasim Industries and Aditya Birla Financial Services (now known as Aditya Birla Capital Limited) and their respective shareholders and creditors.

It means the people who have Grasim shares as of July 20 will be eligible to get shares of Aditya Birla Capital that will be listed soon.

Grasim shareholders will receive 7 shares of Aditya Birla Capital for every 5 shares held in the company.

The merger committee had fixed July 4 as effective date-2 for the effectiveness of demerger of financial services business of Grasim and transfer of the same to ABFSL.

After the demerger, Grasim Industries holds 55.94 percent stake in Aditya Birla Capital, followed by promoter group's 16.75 percent shareholding, public investors 25.11 percent and PI Opportunities Fund - 1's 2.2 percent stake.

Aditya Birla Capital caters to segments like NBFC, insurance, asset management, mutual fund, financing, broking, advising etc.

Management Structure of Aditya Birla Capital

The shareholders of Grasim, Aditya Birla Nuvo (ABNL) and Aditya Birla Financial Services (ABFSL), at meetings in April, had approved the scheme of amalgamation of ABNL with Grasim followed by demerger and listing of the financial services business, in line with NCLT order and the SEBI requirements.

The Honourable National Company Law Tribunal at Ahmedabad, had approved the merger of Aditya Birla Nuvo and Grasim Industries to be followed by the listing of Aditya Birla Financial Services

The merger committee of board of directors of Grasim made the effectiveness of its composite scheme of arrangement with effect from July 1 and fixed the record date-1 as July 6 to allot the shares of Grasim to the shareholders of Aditya Birla Nuvo.

Accordingly, Grasim's allotment committee allotted 19.04 crore shares of Rs 2 each of the company to shareholders of erstwhile Aditya Birla Nuvo in the ratio of 15 shares for every 10 shares held in ABNL on the record date (July 6).

Following this allotment, Aditya Birla Nuvo shares stopped trading on exchanges with effect from July 5.

The merged entity Grasim, will have proforma consolidated turnover of Rs 54,824 crore, EBITDA of Rs 12,259 crore and net profit of Rs 4,076 crore for the year ended March 2017.

On the last day of June, Grasim's board of directors approved the issuance and allotment of 4.84 crore shares on a private placement basis at a price of Rs 145.40 each to P I Opportunities Fund 1.

At 10:03 hours IST, the stock price was quoting at Rs 1,036.45, down Rs 269.40, or 20.63 percent on the BSE.