Aditya Birla Nuvo, formerly called Indian Rayon & Industries, will cease to exist after the merger. "Grasim's shareholders are also getting exposure to financial services and telecom and the listing of ABFSL (Aditya Birla Financial Services) gives them ample scope of value unlocking," he added. Also, Grasim shares already suffer from some holding company discount as it owns 60% in UltraTech, India's biggest cement company. In aggregate, each shareholder of Aditya Birla Nuvo holding 100 shares will receive 30 shares in Grasim and 210 shares in Aditya Birla Financial Services. The listed financial services company will be 57% owned by post-merger Grasim and the balance by post-merger Grasim shareholders on a proportionate basis.

Source: Economic Times August 11, 2016 14:59 UTC