Shares of Aditya Birla Nuva (ABNL) and Grasim Industries slipped after the announcement of merger of ABNL into Grasim and the Subsequent Demerger & Listing of the Financial Services Business.
The merger will create one of India's largest and well-diversified companies with a combination of cash generating and high growth businesses, the company said in the press release.
Demerger of the Financial Services business resulting in a listed financial services company with 57% owned by post-merger Grasim and the balance being held by post-merger Grasim shareholders on a proportionate basis, the press release added.
For Merger of ABNL with Grasim, each shareholder of ABNL will get 3 new equity shares of Grasim for every 10 equity shares held in ABNL i.e. a shareholder holding 100 shares in ABNL will receive 30 shares in Grasim.
For demerger of Financial Services business into ABFSL, each shareholder of Grasim (post-merger) will receive 7 equity shares in ABFSL for every 1 equity share held in Grasim i.e. a shareholder holding 100 shares in Grasim will receive 700 shares in ABFSL.
Shares of Aditya Birla Nuvo slipped 17.80 per cent to Rs 1287 on BSE at 12.50 pm IST. It touched an intra-day low of Rs 1180 during trade.
Shares of Grasim Industries was seen trading at Rs 4531, lower by 0.15 per cent on BSE at 12.23 pm IST. It touched an intra-day low of Rs 4160 during trade.