Merger of Aditya Birla Nuvo Ltd. (ABNL) with Grasim Industries has been approved by minority shareholders of both companies. A Rs. 60,000 crore diversified entity will be formed after the merger. The decision was taken at a meeting of shareholders of Grasim, ABNL and Aditya Birla Financial Service Ltd. held recently.
The plan is expected to be effective from second quarter of this fiscal after getting necessary approvals from regulators and exchanges as NCLT, BSE and NSE.
“The portfolio would now span the manufacturing and services business with leadership position in cement, financial services, telecom, textiles and chemicals sector,” said Kumar Manglam Birla, Chairman, Aditya Birla Group while commenting on the development.
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” said the company in its regulatory filing.
Also Read – Aditya Birla Group appoints new CEO for Grasim’s textiles division
The Chairman added: “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.”
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.
