Grasim Industries, Aditya Birla Nuvo About To Merge

The boards of Grasim and Aditya Birla Nuvo Limited, which are meeting on Thursday to
examine their June quarter earnings, will also look into a multi-phase restructuring which will
involve the merger of the two firms and sorting of the financial services business by way of a
part demerger.
The Kumar Mangalam Birla-controlled Aditya Birla Group has been trying to reform its
business for the last five years and list its financial services division as a separate entity.
Presently, its financial services business, such as life insurance and mutual funds, are housed
under Nuvo.
On Thursday, Grasim share price dipped almost 5% to open at Rs. 4839.00 against its
previous closing at Rs. 4843.50. The stock saw a surge in volume by more than 1.33 times.
The plan is to bring together Grasim Industries and Aditya Birla Nuvo to initiate a stronger
holding company so as to unlock shareholders value and uplift the balance sheet for the next
level of growth. This will result in listing of financial services as an entity. At the same time it
will further enhance the existing listed entities. Both Grasim Industries and Aditya Birla Nuvo
boards are meeting to consider their June quarter earnings and will accordingly be notified to
the stock exchanges with all relevant details.
Grasim Industries is a flagship company of Aditya Birla Group and has four business verticals
which include viscose staple fibre, cement, chemicals and textiles.

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According to reports, the deal is certainly happening the company is taking into considerations
several options involving merging two companies or demerging some of the businesses. At the
same time the investment bankers are working on swap ratios and nothing has been finalized
yet.
As of now Grasim share price is trading at Rs. 4610.00

Grasim share price forecast

Grasim is among the Top 500 shares identified by Dynamic Levels for this quarter. On
5th August 16 Grasim share price met its 52 week high at Rs. 5361.05 and its 52 week low is
seen at Rs. 3233.00 on 26th Feb 16. For further details refer to Grasim share price history.

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Disclaimer
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Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
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